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Mortgage Loans: Types Available To Choose From
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There are different ways one can get a loan to fulfil any financial requirements. Most financial institutes offer unsecured and secured loan. While an unsecured loan involves controlled submission of documents, high interest rates often pose a risk during repayment. An alternative approach is the secured loan, which also includes the mortgage loan. Such a loan is most beneficial to those who already possess assets of considerable value which are unutilized financially. Let us take a look at a few types of this loan to know of the options one can choose from.
Loan against property
Purchasing a property makes for a great financial investment in the future. One can easily purchase a property at a low price and invest in it to increase its value. At the right time, the owner can easily sell the property for a profitable gain or lease it out. However, if there is a requirement for finance, wherein the owner would like to still retain ownership of the property, one can opt for a mortgage loan against such a property. Through such a loan, the financial institute will possess the said property as a means of collateral or security, while the ownership still remains with the owner. The value of the loan for any property can range between 15 lakhs to 10 crores depending on the financial institute and the value of the property. This also depends whether the said property is a commercial investment or a residential one, wherein the former will provide a better investment as compared to the latter.
Loan for purchase of commercial property
Commercial property is often a great source of income for many. With the right planning and the right choice of property, one can easily invest in such projects to get good returns. While an individual can benefit from a loan to purchase this property, careful consideration must be taken with the choice of loan. While unsecured loans include high interest rates and challenging repayment tenures, secured loans like the mortgage loan will provide an individual with a flexible source of financial support. Through this loan, one can opt to purchase an under construction commercial project or a ready to purchase property. With a loan value between 15 lakhs to 10 crores and a loan tenure of 15 years, this makes for an excellent investment when one wants to purchase any commercial property.
Loan through lease rental discounting
Lease Rental Discounting also known as LRD is a termed mortgage loan that is offered against rental receipts derived from lease contracts with corporate tenants. This loan is provided to an individual, based on the discounted value of the rentals and also on the underlying value of the property. Through this loan, an individual can fund financial requirements for business expansion, capital requirements or consolidating obligations.
There are a variety of mortgage loan offered by financial institutions for different purposes. One must plan in advance their reasons for applying for such a type of loan as well as how they plan on spending the money in the best manner possible.
Author Bio :
The author is a seasoned writer on finance topics and she articulates aspects that are important to people availing the SME loan facility. She writes about a variety of topics covering the home loan documents, rates & mortgage loan that help to make the best decision.
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