If you are looking for a significant sum of money or a credit line with a longer tenure, it is best to consider mortgage loans. As mortgage loans are secured and come with fixed collaterals, the chances of approval are also higher than unsecured or revolving loans.
However, every individual might have a property at his or her disposal to mortgage for credit. This is why it is necessary to enlist the assets that qualify for a Mortgage loan and can be used as collaterals for getting rid of catastrophic financial challenges.
- Residential Property
What could be better than using your own house for procuring a sizable credit limit! Therefore, if you plan on getting a decent chunk of money for attending to financial emergencies or setting up a new business, mortgaging a residential property can offer the most value, provided you opt for credible lenders.
- Commercial Property
In case you have a commercial establishment, in the form of a garage, shopping complex, or even a warehouse, you can mortgage the same for taking good care of your long and short-term financial needs. Real-estate establishments often fetch higher valuation and corresponding loan amounts, but the Mortgage loan interest rates in India for these properties are on the higher side, considering the existing risk factors.
However, commercial and residential properties also allow you to get mortgage loans even when the property is leased out to someone else.
- Vacant Lands
In India, you can also mortgage a piece of land in exchange for cash. Vacant land comes forth as quite a plausible option for the borrowers as, in most cases, the land value increases with time, and you end up with a valuable plot once the entire loan amount is paid off.
For some of the more pressing financial necessities, bonds, shares, and IPOs come forth as dependable and productive mortgage options. Although these entities aren’t expected to fetch massive loan amounts, they get approved in a heartbeat and ensure that you have quick access to cash reserves.
Pledging securities is actually a decent investment option in the long run as the portfolio remains secured, and you also have access to bonuses and periodic dividends. However, you must realize that securities, as mentioned above, can only cover short term requirements and aren’t feasible enough for significant financial requirements.
Mortgaging gold assets is a productive approach towards meeting long and short-term goals based on the asset quantity, market value, and the metal’s purity. Gold loans have started gaining immense popularity in the post-pandemic era, courtesy of the lower Mortgage loan interest rates in India, and the compatibility across diverse forms of assets. Being a highly tradable asset, gold is probably the best mortgage option, especially when the financial challenges are imminent.
Each of these properties can be mortgaged with significant ease for covering diverse financial requirements with ease. While the interest rates and speed of approvals might vary depending on the type of bank, NBFC, or any other financial institution, the mentioned assets are extremely dependable and resourceful when it comes to scaling beyond the monetary crisis with a mortgage loan.