Check More About Mortgage Loan Eligibility

HOW MORTGAGE LOAN WORKS

A mortgage loan is a secured loan that can be

What is Mortgag e Loan?

availed by mortgaging any immovable asset like residential or commercial property, piece of land, machinery etc. to the lender. This loan is a suitable alternative for those who do not wish to avail unsecured loans because of high interest rates. Since a mortgage loan is secured against collateral, there are fewer risks associated.

Accordingly, lenders provide higher loan amounts at competitive interest rates.

Mortgage Loan Gives option of flexible tenure, large amount, no end user restriction.

These loans have no end-use restrictions and can be used to meet several financial requirements, including –

Advantages

1. Paying higher-education expenses in India or abroad 2. Fund wedding expenses 3. Consolidating debts 4. Purchasing or construction or renovation of a house However, the mortgage loan amount depends on the current value of the asset and loan to value ratio extended by the lender.

An applicant should meet the following eligibility criteria before availing a loan

Eligibility Criteria

against property – 1. Borrowers must be a resident of India 2. Salaried applicants should be within the age of 33-58 and working in a reputed MNC, public or private sector.

3. A self-employed individual should be between 25 – 70 years and have a steady source of income.

Applicants should also furnish the proper documents while applying for a

Document s Required

loan against property. They should keep the following list of documents handy – 1. Property documents 2. Income proof – income tax returns, salary slips, bank account statements 3. KYC documents, which include PAN, Aadhar card, voter ID, passport, driving license etc

When you avail a mortgage loan, you have to pay certain associated costs. You should know about these charges in detail.

Fees

1. Processing fees 2. Statement charges 3. Interest and principle statement charges 4. Mortgage origination fees 5. Mortgage EMI bounce charges 6. Penalty interest

Mortgage Loan Interest Rates

This is another crucial point that one should know about. There are two types of property loan interest rate – fixed and floating interest rates. Whereas the fixed interest rate stays the same throughout the loan tenor, the floating interest rate varies as per the market index. Aside from that, you should also keep in mind the factors that affect the mortgage loan interest rate.

Applicatio n Process

1. Go to your lender’s website and access the loan application form.

2. Enter the required details in the application form and submit it.

3. After submission, your loan will be approved subject to fulfilling all the eligibility criteria.

4. Once your loan is approved, representatives will contact you to collect the necessary documents.

5. The loan will be credited post document verification.