Mortgage Loan

Mortgage Loan

  • What is Mortgage Loan?
  • A mortgage loan is a type of loan in which borrower is required to mortgage any type of property to the lending institution like it basically act as security against loan if in case someone fails to pay back the loan then the remaining amount can be raised by selling that property. mortgage loan or, simply, mortgage is used either by purchasers of real property to raise funds to buy real estate, or alternatively by existing property owners to raise funds for any purpose, while putting a lien on the property being mortgaged. The loan is "secured" on the borrower's property through a process known as mortgage origination.

    A mortgage loan is one in which you secure funds by pledging your property. The interest rates on mortgage loans range from 8.75% to 13.35%. Usually, the amount of funding you can avail will be up to 60% of the registered value of the property. Some banks also offer mortgage loans up to Rs.10 crore. The repayment tenure for mortgage loans can be up to 15 years.

  • Features and Benefits of Mortgage Loan
  • A mortgage loan comes with the following attractive features and benefits:

    1. It is a cost effective way of borrowing. Normally, you can take a mortgage loan for a longer duration and pay off your repayment by using smaller monthly EMIs

    2. Mortgage loans charge lower rates of interest on your borrowings than any other loans.

    3. Mortgage loan is a secured loan. It is secured against your property. The bank or lender has the right to repossess your property if you can’t repay your loan.

    4.A mortgage loan helps you buy your own house. You can afford to buy a home with the help of this loan and be the sole owner of your property once repayment is over.

    5. You can get loans against under construction property, fully constructed property, freehold residential and commercial properties for:

    6. Get loan for a longer tenure.

    7. Repay your loan with a simple repayment process through monthly instalments. You can pay it off by paying smaller monthly EMIs.

    8. Mortgage loans are offered at attractive interest rates.

    9. Enjoy an easy and hassle free documentation process.

    10. You can get a mortgage loan anywhere in India with integrated branch network provided by banks.

    11. You can choose from a number of interest rates to pay off your loan. They include - floating rates, fixed interest rates, interest-only mortgage and Payment option ARMs.

    12.Get access to a higher amount of funds.

    13. Mortgage loan can be sectioned even before your select your property.

    14. You can apply for it both online and offline and enjoy doorstep services.

    15.Both residential and commercial properties are accepted as collateral for mortgage loan.

    16.Funds received from a mortgage loans can be used for business as well as personal needs.

    17.Self –employed individuals get customized loan options.

  • Eligibility for Mortgage Loan
  • To get approved for a mortgage loan, you need to fulfil the eligibility criteria set by banks and financial institutions. While the criteria may vary from bank to bank, listed below are general factors that determine your eligibility

    • Gross annual/monthly income
    • Minimum age requirement of 21 years
    • Valuation of your property
    • Income proof documentation
    • Existing liabilities
    • Number of dependants
    • Whether you’re salaried or self-employed, you’re eligible for a mortgage loan.

  • Documentation Required
  • The documentation required for the loan application varies based on your employment status i.e., self-employed or salaried. If you’re a salaried individual, listed below are some documents you may be asked to submit:

    • Duly filled loan application form
    • Passport-size photographs
    • Identity proof (PAN card, Aadhar card, passport, driving licence, voter ID card, etc.)
    • Address proof (electricity bill, ration card, Aadhar card, driving licence, rental agreement)
    • Latest salary slips
    • Form 16 issued by employer
    • Latest bank statements
    • Processing fee cheque

    If you’re a self-employed professional/individual, you may be required to submit the following documents:

    • Duly filled loan application form
    • Passport-size photograph
    • Identity proof (PAN card, Aadhar card, passport, driving licence, voter ID card, etc.)
    • Business proof
    • Financial statements for the last 3 years
    • Latest income tax return certificates (last 3 years)
    • Profit and loss statement (P&L)
    • Latest bank statements
    • Cheque for processing fee