An Ideal Solution for
All Financial Troubles With Mortgage
Loans
Breaking down mortgage concepts for first- time buyers
Mr. Roy faces a sudden financial emergency and needs considerable money to fund his expenses. So, he decides to mortgage his apartment and opt for a loan against property from a lending institution.
This is because a loan against property is one of the most convenient credit facilities with several beneficial aspects, such as low home mortgage loan interest rates, tax exemptions, longer repayment tenors, etc. However, before applying for this credit facility, willing borrowers should know the meaning of a mortgage loan and its features.
What is a loan against property?
A loan against property or mortgage loan is a credit facility offered by several financial institutions. The borrower can obtain a sizable amount while keeping his/her residential or commercial property as collateral. In case, the borrower fails to pay the loan amount within the repayment tenor; the lender can dispose of the property and recover the unpaid dues.
Now that you know the meaning of a mortgage loan, let’s know the benefits and features of this credit facility making it the ideal solution for all financial troubles.
Features and Benefits of a Loan Against Property or Mortgage Loan
Here are some of the salient features and beneficial aspects of a loan against property:
Loan against the property being a secured line of credit, lenders offer this facility at a low home mortgage interest rate.
Due to its secured nature, an applicant has to meet simple eligibility criteria and can get the loan amount within a short turnaround time.
The loan against property is free from end-use restrictions. Hence, borrowers can use the borrowed sum to fund their personal or professional expenses without any obligations.
Further, lenders provide a long repayment tenor for a LAP which makes it one of the best choices in times of a financial crisis.
Individuals can also claim tax benefits on the interest paid for a loan against property under Sections 37(1) and 24(B) of the IncomeTax Act of 1961.
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Eligibility Criteria to Apply for a Loan Against Property in India
The mortgage loan eligibility criteria tend to vary from lender to lender. However, some of the basic requirements that an applicant has to fulfill to apply for this credit facility are as follows:
The applicant must be a resident of India.
An individual must have a stable source of monthly income The borrower must have a decent credit score of over 750.
Required to Opt for
returns
Documents
a Loan Against Property Here is a list of documents required to avail of a LAP: For salaried individual Address proof IT
All documents related to the mortgaged property PAN Card Identity proof Bank account statements for the previous three months Salary slips
For self-employed individuals
Address proof
mortgage dproperty
proof
Relevant documents of the
60 or
card of
for the lastsix months
title
documents Financial statements
IT returns
The above-mentioned documents are some basic requirements of most financial institutions.
The above-mentioned documents are some basic requirements of most financial institutions.
Lenders may ask applicants to produce additional documents or paperwork per their requirements and terms.
Identity
Form
PAN
the applicant Bank account statements
Deed and
Repaying a Mortgage Loan
A mortgage loan is a long-term credit facility that allows a maximum repayment tenor of up to 20 years. However, this timeframe also varies from lender to lender. One can repay the amount in the form of monthly installments (EMIs) or prepay a lump-sum amount in case they have extra savings. Prepaying the loan reduces the principal amount significantly and lowers the monthlyliabilities of a borrower.
Moreover, several financial institutions in India, like Bajaj Finserv, provide preapproved offers for their financial products, such as loans against property, housing loans, etc. These exclusive offers fasten the approval procedure and ensure a smooth disbursal of the loan. To check your pre-approved offer, just enter your name and mobile number in the required section of your preferred lender's website.
Hence, a LAP is one of the most popular credit facilities due to its several benefits, such as low mortgage loan interest rates, tax exemptions, easy-tomeet eligibility parameters, etc. Besides knowing the meaning of a mortgage loan, one should always make sure to use the borrowed amount wisely and re- pay the loan on time. This will keep the mortgaged property safe throughout the repayment tenor and ensure a hassle-free borrowing experience.
