Mortgage Loan: Unlock Property Value for Bigger Financial Needs

June 4, 2025 | IST

A mortgage loan, also known as a loan against property (LAP), is a secured loan that allows you to borrow funds by pledging your residential or commercial property as collateral. It is ideal for meeting high-ticket personal or business financial requirements such as education, weddings, medical emergencies, or business expansion.

What is a Mortgage Loan?

A mortgage loan is a long-term financing option provided by banks and NBFCs, where borrowers keep their immovable property as security. While the ownership remains with the borrower, the lender holds rights to the property until the loan is repaid in full.

Features of a Mortgage Loan

- Loan amount up to 70% of the property’s market value
- Tenure ranging from 5 to 20 years
- Attractive interest rates starting at 8.5% p.a.
- EMI-based repayment with flexible options
- Available for salaried, self-employed, and business owners

Types of Properties Accepted

• Self-occupied residential property
• Rented or let-out residential property
• Commercial property (shops, offices)
• Fully constructed and free from legal disputes

Eligibility Criteria

- Indian citizen aged between 21 and 65 years
- Stable source of income (job, business, or profession)
- Clear property title and documentation
- Good repayment track record or credit score (650+ preferred)

Documents Required

- Identity & address proof (Aadhaar, PAN, Passport)
- Latest salary slips or business income proof
- Bank statements (last 6 months)
- Property documents with clear title
- Property tax receipts and utility bills

Benefits of Mortgage Loans

- Large loan amount for major expenses
- Longer tenure helps reduce EMI burden
- Lower interest rates than personal loans
- Continue using the pledged property
- Balance transfer and top-up facility available

How to Apply for a Mortgage Loan

1. Assess your loan eligibility using an EMI calculator
2. Choose a reliable lender and apply online or offline
3. Submit all required documents and property papers
4. Property valuation and legal verification
5. Loan sanction, agreement signing, and disbursal

Things to Consider

- Ensure all property documents are clear and updated
- Compare interest rates and processing fees
- Be aware of prepayment and foreclosure charges
- Keep a buffer in your budget for EMI payments
- Ensure timely repayment to avoid risk of property repossession

Conclusion

A mortgage loan is a powerful financial tool that allows you to leverage your property for funds without giving up ownership. With longer repayment terms and competitive interest rates, it's an ideal choice for planned or emergency financial needs.

Use your property smartly—apply for a mortgage loan today and fund your goals with confidence.