In a broad sense, the term ‘mortgage’ stands for a legal agreement based on which a Bank, building society or a lending institution lends money at interest. This agreement is made in exchange for holding title of the debtor’s property. Mortgage, Pledge and Hypothecation are different terms that are used to create a charge on the assets which is given by the borrower to the lender.

A Home Loan is a loan paid in advance to the borrower to buy a house or flat. Let’s throw more light on this subject.

A Home Loan is a secured loan and the property purchased by the borrower is held as collateral by the Bank or the lending institution through the tenure of the loan. The features of the Home Loan are created such that the payment of the borrower (in the form of an EMI or a part of the capital amount) can be extended over a long time, sometimes as long as 20 to 25 years. The eligibility for the Home Loan is decided by using the Home Loan eligibility calculator. It is very important to know here that a Home Loan is disbursed successively as the construction of the house progresses. On the other hand a mortgage is when you pledge your house to the lender that you already have to get a loan for other purposes. The time period of a mortgage is different from that of a Home Loan. There can be different types of assets used for a mortgage, not necessarily a house.

The features of a mortgage are limited compared to a Housing Loan. Enlisted below are the main things you need to factor when choosing your Home Loan;

Home Loan interest rate

Broadly speaking, there are are two kinds viz., Fixed and Variable.

Term of your loan

Depends majorly on the age of the borrower. The younger you are, the longer is the term that you get to repay.

Ease in documentation formalities

Most Banks and lending institutions have a common documentation framework. Keep all your necessary records intact to ease the process of procuring a loan.

Credibility of the Bank or the lending institution

Make thorough enquiries and settle for the lender who holds a good market credibility.

Servicing strength of the lender

It matters much. Scout the market and choose a lender who will service you satisfactorily all through your loan tenure.


By and large, a Home Loan is considered as an asset more than a liability because after your repayment gets over, you own one of the most prized assets called ‘Home’. If you are planning to go for a Home Loan, act fast because, the sooner you go for it, the longer is the repayment tenure you get. There are Banks and lending institutions which offer Home Loans at attractive interest rates by setting their terms & conditions and servicing standards much to the delight and convenience of the borrower.

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