Is Home Equity Loan same to Mortgage Loan- FutureEnTech | Technology, Environment, Humanity, Lifestyle

Is Home Equity Loan same to Mortgage Loan

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Is Home Equity Loan same to Mortgage Loan
A mortgage loan helps you get funds against your home’s value and the usage of these funds isn’t limited to your home. A home equity loan is a loan taken to against the equity of a property and can be used to fund an education abroad, pay for wedding expenses, or even refinance your existing home loan. 

Thus, both of these loans are secured loans against property and are one and the same. With such a loan, you can access a range of benefits to make your loan borrowing experience easy on your mind and pocket. Look at the loan against property features below.

High Loan Amounts

As a loan against property offers you a sum based on the value of your property, you can get substantial funding for all your needs. This avoids any need to get additional credit or funding to pay for heavy expenses like the consolidation of debt or medical expenses. Leading NBFC Bajaj Finserv offers up to Rs.1 crore for salaried individuals and up to Rs.3.5 crore for self-employed individuals.

Easy Repayment

Despite the heavy loan amount you can avail nominal interest rates on your loan against property as it is a secured loan. While you need to pledge your property as collateral, the interest rates on loan against property are much lower than the interest rates of unsecured loans like personal loans. 

Additionally, you can also choose a tenor according to your income and monthly cash flow from a range of 2 to 20 years. You can calculate the ideal EMI amount easily by using an EMI calculator and tweaking the inputs to arrive at a tenor that will ensure your EMIs help you get debt-free faster without straining your monthly budget.

Flexible Repayment Options

Along with being able to choose a tenor as per your convenience, you can also choose other flexible options when you apply with top lenders. For instance, Bajaj Finserv offers a Flexi Loan facility on a Loan Against Property that enables you to borrow as you need. 

You will only need to pay interest to the used amount and you can also choose to pay interest-only EMIs to manage your finances efficiently. This makes the loan against property ideal for situations like renovating your home where costs may exceed the provided quote or a medical emergency where you may not know the exact amount you need. So you need not borrow extra funds as a buffer and pay interest on the same.

Minimal Requirements

If you are applying for a loan against property in India, choose to apply with top lenders and this will mean you can benefit from an easy loan against property eligibility criteria. 

Additionally, the loan against property documents required will be minimal avoiding the hassle of submitting files of paperwork just to avail the finances you need. Bajaj Finserv cuts down on excessive documentation while also offering doorstep pick-up to add to your convenience.


Additional Features

You can also benefit from additional features like online account management and easy loan balance transfers. For example, if you apply for a loan against property from Bajaj Finserv, you can use the customer portal to keep a tab on your loan account and access the same at any time from anywhere. You can also transfer your existing loan against the property to Bajaj Finserv to avail these benefits and get an affordable top-up loan.

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