The mortgage loans is one of the commonest types of financial solutions available in India. There are 6 types of mortgage loans available in India. If you want to know about it, then this post will help you know more!
Types of Mortgage Loans at a Glance
In this loan type, the borrower mortgages the asset that is immovable personally to avail the loan. The lender has the authority to sell off the mortgaged property if there are repayment failures.
Under this type of mortgage loan, the possession of the property gets transferred to the lender who receives profits/rents from it without leading to any liability on the borrower.
Here, personal liability is on the borrower. The mortgaged property gets transferred to the lender. It is on the condition that there will be successful loan repayment, and it will lead to recovery.
Mortgage by conditional sale
In this case, a mortgager sells off his property with conditions that it becomes effective in case if he defaults in the repayment. But the same becomes void if there are successful repayments.
Mortgage by title deed deposit
In this mortgage type, the borrower deposits to be mortgaged property’s title deeds with the creditor against the loan to avail.
It is a type of mortgage loan that does not come under any of the aforementioned ones.
What are other different Types of mortgage loans?
- Home loans
- Land purchase loans
- Lease renting discounting
- Loan to buy another commercial property
- Loan against residential property
- Loan against commercial property
Talking about types of loan against property (LAP), you should know that many lenders make it customized to meet your different needs. Let’s take a look:
Loan against commercial or residential property
This loan lets you avail a large loan amount when you pledge your residential or commercial property. The loan amount is based on the market value of the pledged property.
Loan against property for self employed
If you are a self employed individual and looking to arrange a large amount of money, then you can go for this type of loan by meeting a respective lender’s eligibility.
Loan against property for salaried
Salaried professionals can cover their immediate and long-term financial needs by opting for the loan against property for salaried.
Loan against property for home renovation
Home renovation may need you to put in lakhs if you want to undertake it. From kitchen modifications to bathroom fitting and more, the loan against property for home renovation can help you do all.
Loan against property for education
One of the key types of loan against property is the one that you can apply to use the funds for covering the costs of quality education for you and your children through education loan.
Loan against property for wedding
The expenses of an upcoming wedding in your family could be many. Even if you have saved for years, there may be some shortage of funds. Hence, to cover all needs of an Indian wedding, you can always opt for the loan against property for marriage.
Loan against property for debt consolidation
If you have debts that are accruing higher interest and consuming a large portion of your income, then the loan against property for debt consolidation may help you. You consolidate all debts, pay 1 EMI and benefit from the lower interest rate in LAP.
If you wish to cover your multiple financial needs without paying higher interest charges, then you can rely on the loan against property – a type of mortgage loan.