Mortgage loans often deemed as a credible financing option can come to the rescue for financial emergencies by pledging an asset as security with a reliable financial institution. While applicants may often render a mortgage loan to be a risky venture, yet wise application can bring forth substantial benefits.
Banks and NBFCs can disburse a high loan amount which other loans fail to provide. Hence, mortgage loans act as one of the favoured means of financing.
Benefits of Mortgage Loans:
1. Loan Amount
Since the loan is secured against your property, the lending institution is comfortable in sanctioning substantial loan amounts.
2. Interest Rate
When backed by your personal property, the financier levies lower mortgage loan interest rate as compared to various unsecured loans. Also, the option to avail either fixed or floating rates of interest is available.
This loan provides flexibility to the borrower to choose an extended repayment period till 30 years. Hence, EMI amount remains low and the borrower can repay comfortably throughout the tenure.
4. Improves Credit Score
If paid regularly and without default, installments can improve the credit score and increases creditworthiness of a borrower.
5. Tax Benefits
Procuring home mortgage loans qualifies the borrower to enjoy tax benefit. The interest paid on loan can be excluded from the tax amount.
6. Multipurpose Use
The loan amount can be utilised for any purpose like sending a child abroad for higher education, marriage expenses, debt consolidation, etc.
The benefits of a mortgage loan are pervasive to all age groups and categories. In other words, whether you are a business unit or an individual or a senior citizen, flexible mortgage loans are available to cater to your needs.
> Mortgage Loan for an Individual
For an individual seeking a loan, availability of options ranges from a personal loan to secured loans like a loan against property. The sanction amount and Mortgage Loan Interest Rates are better in case of the latter than personal financing.
> Mortgage Loans for the Business Unit
Liquidity is essential for any business unit. Regular cash flow ensures smooth operations. Accommodating unforeseen payments or dues accrued in a short span requires a business unit to be cash ready. This compels the firm to opt for loans like business loans, working capital loans, or even apply for mortgage loans.
With a handsome loan amount, a mortgage loan in the form of a loan against property can help businesses meet any liquidity crisis, or expand the venture as per requirements.
> Reverse Mortgage Loan for Senior Citizen
Senior citizens can avail a specially designed Mortgage Loan known as a reverse mortgage loan. In this loan, the home is mortgaged to the lender, and the lender pays a fixed monthly payment to the borrower. The homeowner pays the house tax and insurance premium. The lender covers the loan amount after the home is sold or vacated.
Conventional mortgage loans provide multipurpose use which can comfortably accommodate in different groups. This secured loan can offset various small loans in one go.
This is a conventional loan which is not outdated and has adapted to the changing needs of people. It is a cost-effective loan which has unveiled the potential of an asset and helped the borrower to bag better mortgage interest rates and loan amounts.
To get an idea of the EMIs, check the mortgage loan calculator and avail better deals with leading lenders.