Smart Mortgage Solutions for Every Dream Home
What is Mortgage Loan
A mortgage loan is a secured loan where you pledge your property—residential or commercial—as collateral to receive funds from a lender. It allows you to access high-value financing for purposes like purchasing a home, expanding your business, or managing personal needs, all while keeping ownership of your property.
Most common types of Mortgage Loan are:
Home Loan (HL)
A Home Loan helps you buy, build, or renovate your dream home with financial ease. Whether you're a first-time buyer or looking to upgrade, a home loan gives you long-term funding at competitive interest rates.
Features of Home Loans:
- Loan amounts tailored to your eligibility
- Flexible repayment tenures
- Attractive interest rates with both fixed and floating options
- Minimal paperwork and fast approvals
Loan Against Property (LAP)
A Loan Against Property allows you to unlock the hidden value of your residential or commercial property. By pledging your owned property as collateral, you can raise funds for personal, professional, or business needs—without selling your asset.
Key Benefits of LAP:
- High loan amount—based on property value and your eligibility
- Long tenure with flexible EMI options
- Lower interest rates compared to unsecured loans
- Funds can be used for multiple purposes: business expansion, education, medical expenses, etc.
Benefits of Mortgage Loans
Lower Interest Rates
Mortgage Loans generally have lower interest rates than Personal Loans or Unsecured Loans. They are low-risk for lenders because they are secured by property.
Flexible Repayment
You can choose a repayment period that suits your financial situation. However, your credit score, income, and loan amount can impact this.
Improve Credit Score
If you pay your loan installments on time, your credit score will gradually improve. This can help you get loans and Credit Cards at better terms in the future.
Buy property without upfront payment
Mortgage Loans allow you to buy property without paying the full price.
Mortgage Loan Balance Transfer
A Mortgage Loan Balance Transfer allows you to shift your existing loan from your current lender to a new one offering better terms. This option is ideal if another bank provides lower interest rates, flexible repayment options, or a longer tenure. Once approved, the new lender pays off the outstanding balance to your current bank, and your loan continues with the new terms under the new lender.
What is Loan-to-Value (LTV) Ratio?
A Loan-to-Value (LTV) ratio in a Mortgage Loan is the percentage of the asset value that a bank or financial institution can lend to an asset buyer. Lenders are not permitted to lend/finance the full property value, hence, you cannot avail 100% of your asset purchase price as a loan.
Calculation of LTV
The LTV ratio is calculated by the lenders using the below given formula:
LTV Ratio (%) = Amount Borrowed/Property Value X 100
For example, if you wish to buy a house worth Rs 1 crore and the LTV ratio of your bank is 70%,
then the maximum amount of loan that you can avail is Rs 70 lakh
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Eligibility is based on your income, age, credit score, employment status, and property value. Salaried, self-employed, and business owners can all apply.
Typically:
● ID proof (PAN, Aadhaar, Passport)
● Address proof
● Income documents (salary slips, ITRs, balance sheets)
● Property documents (title deed, tax receipts, approved plan)
SkillLabs’ advisors assist with documentation and bank submission.
A home loan is taken to purchase or construct a property, while a loan against property is taken by pledging an already-owned property to meet personal or business financial needs.
Most banks offer between 60–80% of the property’s market value, depending on the property type, condition, and borrower profile.
Once all documents are submitted, approval typically takes 5–10 working days, depending on bank procedures and property verification.
Yes, most lenders allow part-prepayment or full foreclosure. Some may charge a small fee for fixed-rate loans, while floating-rate loans are often penalty-free.
The Loan-to-Value (LTV) ratio represents the percentage of your property’s value that a lender is willing to finance. For example, an LTV of 75% means the bank can lend ₹75 lakhs for a ₹1 crore property.
It’s the process of moving your existing loan from one bank to another offering lower interest rates or better terms. SkillLabs helps you compare options and manage the transfer smoothly.
Still have questions?
Contact our mortgage specialists for personalized guidance and support.
