A mortgage loan is a loan taken out against a property that you own. The property may be a house, a shop or any other commercial property. In today's times, mortgage loan is being offered by Banks & NBFC's. The property serves as collateral and it stays in passion of the lender until the loan is repaid in full.

Interest Rates on mortgage loan
Broadly there are two types of interest rate levied on the mortgage loan - Fixed & Floating interest rate
Fixed interest rate: As the name itself suggests, a fixed interest rate remains the same for the entire loan tenure. This rate is applicable for short tenor loan option.
Floating interest rate: In this the interest rates are adjusted according to the prevailing market rates. This is a rate of interest than can change periodically and it is linked to the Marginal Cost of Funds based Lending Rate.

Mortgage Loan - Key features
The lending institutions accept fully constructed residential or commercial property for mortgage loan option.
The property should possess marketable value and be a freehold property i:e one which gives the property owner the full legal right to transfer the ownership of the property.
As the property is mortgaged with lending institution, this loan is a secured loan