Basics of a mortgage loan.

Economic Times (New Delhi, India), June, 2006

Jun. 4--A home Loan based on mortgage is like any other loan which is offered to a borrower against the security. Here security is the Home. Loan is offered to borrower to purchase or build a new house on the basis of his eligibility and bank's lending rules.

In Indian context, Mortgage Loan means a loan which is taken against the existing property by creating a charge on the property. Mortgage is popularly known as Loan against Property also. Technically, in both the cases we can say that there is a mortgage charge created on the house which has been put as a security.

Types of Mortgage:

Equitable Mortgage or Oral Mortgage -- In this case, Housing Finance Companies (HFCs) will check property documents and offer loan by signing a loan...