If you have a commercial or residential property, it can be used as collateral against a loan if you are in need of urgent financial requirements. Monetary issues pertaining to children’s education, business expansion, medical treatment, or weddings can be conveniently solved with the help of a mortgage loan. Having a property will secure a loan for you by mortgaging the property. A mortgage loan against property can be obtained by any individual or organisation that owns a property.
A Mortgage loan against property is a secured loan taken by pledging property as collateral or security. You can get a mortgage loan with an interest rate ranging between 8% to 25% p.a. With the help of this loan, you can get quick funds of up to Rs 25 crore with a repayment tenure of more than 15 years.
Features of mortgage loan against property
Mortgage loans have fascinating features that will attract you to borrow this loan. Here are a few features listed for your convenience.
Low-interest rate
Affordable interest rate is an interesting feature of mortgage loans against property. Since this loan is a secured loan, banks and financial institutions offer low-interest rates. Borrowers will have to pay lower EMI’s due to lower interest rates. Thus, a mortgage loan against property is preferred by most borrowers.
Convenient repayment tenure
The repayment tenure of a mortgage loan against property is stretched up to 15 to 18 years. You can easily make a repayment plan for the entire period. You can schedule monthly EMI payments so that you don’t miss out on due dates.
High loan amount
To get substantial funds, a mortgage loan against property helps you get a high loan amount which you can use for personal or business purposes. You can get funds up to 70% of the market value of the property. Also, the long tenure of the loan means you have sufficient time to repay the loan.
Easy documentation
The process of documentation of a mortgage loan against property is quite simple. If you apply for the loan online, you can submit the required documents with the application so that the process can be done a lot faster. This way you save time and effort.
Eligibility Criteria of mortgage loan against property
The eligibility criteria for salaried and self-employed applicants are different. Below is the list of criteria for both the type of applicants
Salaried individual
- You should be an Indian citizen, residing inside the country to be eligible for the loan.
- Your age should be between 23 and 62 years. However, age criteria may differ in the other banking institutions.
- You should have 3 years or more experience working at a public or private company.
Self-employed individual
- You should be a residing Indian citizen.
- You should be between 25 and 70 years of age. The criteria might differ from lender to lender.
- You have to present proof of income to the lender to be eligible for the loan.
Documents required for mortgage loan against property
The process of availing a loan is pretty straightforward. Minimal documentation is required for a mortgage loan against property. Here is a list of documents required by the lender.
- A completed application form with a recent photograph
- As proof of identity, you can provide your Aadhar card, Passport, Driving license, or Pan card.
- As proof of address, you can submit your Ration card, Telephone bill, Electricity bill, or Driving license.
- As age proof, you can provide your Passport, Driving license, or any other statutory certificate to the lender.
- Income tax return details have to be provided as income proof.
- Salaried individuals will have to submit a current employment certificate for employment proof.
- You will have to provide documents of the property against which you will be taking the loan.
Additional documents for self-employed individuals and SMEs
- Self-employed applicants will have to submit their Income statements for the last 2 years attested by a CA.
- Audited financials for the past 2 years will have to be provided by the SMEs.
How to apply for a Mortgage loan against property?
You can apply for the loan by visiting the nearest branch. A bank representative will help you with the process of application. Make sure you carry the required documents with you.
If you want to apply online, here are a few steps you can follow:
- Visit the official website and click on the online form for a mortgage loan against property.
- Enter all your personal and property details.
- Submit income and financial data.
- Submit the application
After submitting the application, the bank support team will contact you when you submit relevant documents. All the documents will be verified once before sanctioning the loan. The loan amount will be credited to your account if the submitted documents are approved.
Mortgage loans have a hassle-free documentation and eligibility process that will save your time if you urgently need funds. While taking a loan, we always wish for a lower interest rate and convenient tenure, with a mortgage loan, it is possible. You will not be required to use your savings as you will have ample time to plan your monthly payments.