While there are multiple loan options available in the Indian markets, mortgage loan has always been a popular choice. It is a secured loan where the borrower gains the freedom to avail a huge loan amount and a long repayment tenure by simply offering an asset. This asset can be a house, land or any piece of commercial property owned by the borrower which can be offered to the lender as a collateral or security. In addition, the lender keeps this asset until the entire loan amount is paid back by the borrower.

It is important to note that mortgage loans can be of three types, namely home loan, commercial loan and loan against property. While a home or commercial loan can be used to purchase a home or commercial space respectively, loan against property allows you to use the raised amount for any kind of purpose as the lender does not dictate the terms of usage. However, the borrower must keep in mind that in case he/she fails to make a payment, the lender has all the rights to seize the mortgaged property.

What are the features/benefits of mortgage loans?

Today, there are many banks and non-banking institutions that provide well-customized mortgage loans in order to align with the specific requirement of the borrowers. To help you gain a better clarity about these types of loans, listed below are a few benefits offered by them.

1. Simple eligibility criteria – The eligibility criteria demanded by mortgage loans is quite simple as the borrower just needs to be between 33 and 58 years of age if he is salaried, and those who are self-employed should be within the age limit of 25 and 70 years. Most importantly, he/she needs to have a stable source of income along with a positive CIBIL score.

2. Easy documentation – Mortgage loans are accompanied with simple documentation work. Usually, you are asked to submit documents such as KYC, address proof, identity proof, bank statements, salary slips and income tax returns to seek the approval.

3. Competitive interest rates – Since a mortgage loan is secured by offering an asset, the interest rate is usually lower as compared to the secured loans. In addition, if the borrower has a good credit history then he is even eligible to negotiate the rate of interest, EMI amount and other terms and conditions.

4. Quickprocessing and disbursal of funds– Given the consistent growth in the digital world, now not only the borrowers can quickly complete the entire approval process online but at the same time, the funds are disbursed in their account within a day or two, only if they pass the eligibility criteria.

5. Flexible tenor period – While the tenor offered to you may differ from one lender to another, generally it is 2 to 20 years for those who are salaried employees, whereas for self-employed individuals, it ranges from 2 to 18 years.


To wrap, if you are in need of raising huge amount of funds and have an idle property to offer then a mortgage loan might be just the right option for you. These secured loans are offered at low interest rates and come with a flexible repayment tenor. Most importantly, they ask for simple eligibility criteria and are supported with quick and easy documentation.