Unlock The Value Of Your Property With A Mortgage Loan

For most Indians, a house is the biggest asset they possess. And, in India, mortgaging a house to get urgent cash is a common phenomenon.

Since Indian borrowers mostly rely on a Mortgage loan to arrange hassle-free money, Indian lenders often reserve the best interest rates for the borrowers of a mortgage loan. A mortgage loan offers several benefits that you are unlikely to get from any other loan or card.

Here are the most common benefits you can get with a mortgage loan.

Monetise the Idle Asset

Generally, your house is considered a depreciating asset. With every passing year, its quality decreases. Moreover, you may occasionally need to carry out repairing, repainting, plumbing, or electrical wiring.

Sometimes, you may even have to renovate your house. A mortgage loan allows you to pledge your existing house to receive money for home renovation. Some reputed lenders like PNB Housing also disburse mortgage loans against a plot of land.

The greatest benefit of a mortgage loan is that you can utilise an idle property to get money. In essence, you are unlocking the value of your property.

Use It for Anything

Not only home renovation, but you can also use the mortgage loan funds for sponsoring a big fat Indian wedding, travelling to an exotic destination with your friends and family, or to set up a business of your own. Alternatively, you may use the money to settle hospital bills, buy a car or motorcycle, or purchase a new house.

Hence, you can use your dormant property to fulfil many dreams of life.

Easy Eligibility

Getting a mortgage loan is a lot simpler than other forms of high-interest credit. While other unsecured loans require a high credit score and income, a mortgage loan only requires you to have the ownership rights to a residential or commercial property.

While they would still prefer if your credit score or income is high, but that only affects the mortgage loan interest rate and not the approval of the loan.

Simple Documentation

The documentation of a mortgage loan is as simple as the eligibility criteria. You have to submit documents like PAN card, Aadhar card, income statement, bank account statement, Profit and Loss statement (if self-employed), Income Tax Returns, and property papers.

If you apply offline, you have to collect the application form from the lender’s office. If you choose the online mode, the application can be submitted online.

Attractive Rate of Interest

The interest rate of a mortgage loan generally starts from 9.50%. However, the interest rates depend on your repayment capability and financial status. The lender usually goes through your income statement and bank account statement to observe your cash inflows and outflows and determine the merit of the loan application.

To increase the chances of loan approval, you should try to keep three months’ EMI amount in your bank account prior to the loan application.


By availing a low-interest mortgage loan, you can monetise an asset which otherwise consumes money. Ensure that you do not spend the money on speculative investments like stock trading or mutual funds. Also, read the loan terms and calculate the associated fees before choosing the right lender.