ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A mortgage loan is classified as a secured loan because your home serves as collateral for the loan. Long-term mortgage loans with terms of up to 30 years are available and can be repaid in manageable monthly payments or EMIs. A mortgage loan can be tailored to your specific requirements.

Detailed explanation-2: -A mortgage loan can refer to a home loan or commonly, it can refer to a loan obtained for any purpose by offering property (residential or commercial) as collateral.

Detailed explanation-3: -What is the difference between mortgage and loan? A loan is the sum of money borrowed from a financial institution to meet various goals or requirements. It may be collateral-free or secured. Mortgage refers to an immovable property that is used as collateral to avail a loan.

Detailed explanation-4: -A home loan is a secured loan that is obtained to purchase a property by offering it as collateral. Home loans offer high-value funding at economical interest rates and for long tenors. They are repaid through EMIs.

Detailed explanation-5: -Mortgage refers to the process of offering something as a guarantee or collateral against a loan. One may come across the term when looking for secured loans. Generally, home loans of all types are secured loans. The borrower must offer their property as a security to the lender.