Home loan consultant in Bangalore

Mortgage loans & difference between home loan and property loan?

Money Tez is one the best Home loan consultant in Bangalore, we provide home loans at that rate as low as 8.5%. In this blog we will discuss on several types of mortgage loan in India and difference between home loan and property loan.

Types of the mortgage loan (by Home loan consultant in Bangalore)

Money Tez one of the best home loan consultant in Bangalore have been able to provide great assistance to our customer for availing best mortgage as per their requirement. There are lots of mortgage loans available with different banks and other financial institutions in India. Each mortgage loan has several rules and regulations under its loan. As well as, payment period and interest rate also vary.

Here are some of the most know mortgage loans in India-

Equitable mortgage loan (by Home loan consultant in Bangalore)

Equitable mortgage loan is simple known as a mortgage by deposit of title deeds. As referred, it is created by the borrower in favour of provider of the deposit of title deed of immovable property as security such as property, home etc. The collateral is repaid back when the borrower repays the whole amount with interest involved. So, it creates a payment on the property with no legal procedure involved. The deposit of the legal agreement may or may not have been officiated by way of written Memorandum legal agreements. Even in case of absence of legal agreement this loan sanctioned when the title deeds is deposited with lender. It can be availed only in towns which are approved by the respective state governments. Contact Money Tez one of the best home loan consultant in Bangalore for availing assistance in availing such loan.

Money Tez one of the best home loan consultant in Bangalore

The person who applies for the loan borrows money from the lender with his/her property as collateral. There is no requirement of any other documentation other than a legal agreement which is signed by borrower and lenders as well as notary. Contact Money Tez one of the best home loan consultant in Bangalore for availing assistance in availing such loan.

Money Tez one of the best home loan consultant in Bangalore

Some benefits of equitable mortgage loans involve stamp duty and other charge is low comparing that to other loans and so it more economical than other registered mortgage loans. In most of Indian states, stamp duty of equitable mortgage loan is as low as 0.1% of the total amount. Thus, it makes one of the prime choices for most of the home loan borrowers in cities that belongs to Tier III and Tier IV. When comparing with other types of mortgages, the expenses of other mortgages may be having stamp duty, registration and others charges that is as high as 8% for male borrowers and 6% for female borrowers. As well as, professional of HFCs and banks are not required to appear at the time of registration at registrar office for availing the mortgage deed. When the amount is paid lender returns the collateral property deed to the borrower.

Second Mortgage Loan (by Home loan consultant in Bangalore)

Non Banking Financial Companies and banks provide this loan which is already under one loan.

For instance: When you take a loan from ‘A Bank’ in 2015. In 2019 the borrower needs additional fund for his or her personal needs. Now, the borrower approaches the bank and applies to the bank for another mortgage loan. Second mortgage loan is also known as top up loan on home loan. Bank provides this additional loan on the basis of the persons credit score and his/her previous payment history. The borrower needs to pay the amount of the second mortgage loan with the first mortgage loan by opting for addition tenure.

Reverse Mortgage (by Home loan consultant in Bangalore)

The loan was introduced by government in the period of 2007-08 Union budgets. This loan is for senior citizens. Most of the Indian senior citizens don’t have a steady monthly income. But most of the senior citizens are found of having a property. In this loan they opt for reverse mortgage. It is exactly opposite to that of mortgage loan. They provide their property as mortgage to the bank or to NBFC. The lender then pays a regular amount like EMIs. Lender sells the property on the occasion of death of the property owner. The amount collected by the owner of the property is taken from the amount the property is sold. As well as, the remaining amount is given to legal heirs of those senior citizens.

Difference between home loan and property loan-

In India home loan buyers have mainly two types of choice for buying a loan. For instance in case of built up property, it is clear that the usage is for residential purpose of the buyer. The financial institutions in India offers loan both for residential property as well as plot. In purchase of either of them there is some difference between the two. Let us discuss them below –

Loan type:

One of the basic home loan and plot loan difference is that plot loan is for buying residential land and home loan if for buying residential property. Land bought out of land loan has no fixed timeline for usage whereas, home loan is taken to buy loan that has the loan amount to buy residential property or building a residential building.

Property type:

In home loan, fund is only provided for a home loan. It can be either government approved housing schemes or freehold resale residential properties or even builder flats. Home loan cannot be used for agriculture or industrial property. Plot loan can also be availed for residential land only. As well as, location of the plot should be within city or municipal limits and not in village. Comparing to home loan, plot loan is not availed for using to purchase agricultural or industrial land. 

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