Mortgage Loan
What is a Mortgage Loan?
A mortgage loan is a type of secured loan in which a borrower pledges real estate property—such as a house, apartment, or land—as collateral to obtain funds from a bank or financial institution. The lender holds a legal claim on the property until the loan is fully repaid.
Mortgage loans are commonly used for:
- Purchasing a home
- Constructing a house
- Refinancing an existing home loan
- Using property to raise funds (loan against property)
Repayment is made through monthly installments (EMIs) over an agreed period, which typically includes both the principal amount and interest. If the borrower fails to repay, the lender has the legal right to seize and sell the property to recover the outstanding loan amount.
Mortgage loans allow individuals and businesses to access large sums of money while leveraging the value of their property.