Mortgage loans will be provided based on already owned property. There is no restriction on mortgage loan usage. It can be used for any purpose. A mortgage is actually made up of several parts – the collateral you used to secure the loan, your principal and interest payments and insurance. Since most mortgages from Shubhbank last 10 to 15 years of monthly payments, you should understand the how exactly it will works for you. Properties are used for the residence purpose usually called as residential properties. Independent houses, flats, villas are commonly considered as residential properties. Financial institutions like these properties and offer more loan to value offer to the borrower. Since at the time of loan default, residential properties are easy to liquidate in the market and recover the loan amount. After residential properties, banks will give preference to the commercial properties for loan sanction to a borrower. The loan quantum and interest comprise your monthly payments in a process called amortization, which reduces your debt over a fixed period of time. With amortization, your monthly payments largely go toward paying off the interest in the early years, and gradually reduce the principal later on. This multi-purpose loan puts funds at your disposal to use as per your wish. And the best part is that the loan is available at a reasonable rate which makes it easy to repay comfortably over as many years.