A mortgage loan is called the most secured loan in the market. It allows anyone – be it an individual or an entrepreneur – to mortgage his/her property and get money against it without any risk to the bank. It is also one of the cheaper retail debt products available in the country. This is because being a collateral-based loan, its rate of interest is normally lower than other debt offerings from banks such as personal loans or business loans. The disbursed amount on the mortgage depends on the value of the property. Loan eligibility is determined primarily by the strength of one’s income and the value of the property one possesses.
Like all other loans, the EMI on a mortgage loan comprises the interest and the principal. Once the borrower repays the full principal, the loan contract ends with the bank.
