Do you want mortgage loans and wants to know everything around mortgage loans such as what’s the average interest rate, how to compare mortgage loans, facts etc. Also, in this article, you will get to know:
- What are the documents required for mortgage loans?
- Elligibility Criteria
- Application Process
Incase you want to know anything specific, you may ask us in a comment section.
In the wake of the RBI slashing repo rate to 4%, financial institutions stand to lower their lending rates, including the mortgage loan interest rates. Such a move has made both secured and unsecured credits a more feasible option to satiate financial requirements, and hence, has been welcomed by intending borrowers.
Regardless, choosing a mortgage loan entirely because of its interest rates would not be a smart move in most cases. Resultantly, intending borrowers must make it a point to weigh in all the significant aspects of such a credit option.
Essential facts about mortgage loans
Typically, a mortgage loan comes with these following features –
- High loan value
Based on the current market value of the mortgaged property, applicants can avail as much as up to 80% of the sum as a loan amount. The substantial loan value helps to meet financial requirements effectively. Also, its use can vary as per the loan type.
Like, with loan against property, one can use the loan value to meet any personal, business or educational purpose. With home loans, however, the use is limited to house purchase or construction.
- Flexible tenor
It comes with a tenor of up to 20 years or more and flexible repayment options. However, borrowers must analyse the impact of tenor on their EMI before selecting a particular tenor. For instance, a longer tenor accompanies a lower EMI amount and vice versa.
- Quick disbursal
Generally, financial institutions follow a simple documentation process. It facilitates verification and loan approval significantly, and accelerates the loan disbursal process. Usually, it takes a leading financial institution 4 days to disburse the sanctioned amount.
- Interest rate
Unlike unsecured loans, the mortgage loan interest rates are comparatively low, making it easy to repay. However, several factors tend to influence the same significantly; the following are some of the many factors –
- CIBIL score and
- Credit report
- Loan value
- Credit utilisation ratio
- Job stability and low income
- The market value of the mortgaged property
- Balance transfer and top-up facility
The balance transfer feature helps to lower the mortgage loan interest rates, while top-up loans help borrowers to avail additional funds to meet their diverse funding requirements.
The concerned lender also brings pre-approved offers, which help to make the experience of availing a loan less cumbersome. Such offers are provided on several financial products, including home loans and loans against property. Check your pre-approved offer by just entering your name and contact number.
Notably, being a secured loan option applicants need to pledge collateral to avail a mortgage loan. Usually, commercial and residential properties are preferred as collateral security.
Mortgage loan Application process
Intending borrowers can easily apply for a mortgage loan online by following these simple steps.
Step 1 – Visit your chosen lender’s official website.
Step 2 – Look for the ‘Mortgage loan’ page.
Step 3 – Click on the ‘Apply Now’ button.
Step 4 – Provide the required details.
Step 5 – Check the details and click on ‘Submit’.
Intending borrowers can also reach out to their choice of a financial institution to find out if they can apply for a loan against property offline. Subsequently, they should proceed with the necessary steps involved to apply.
Documents required for mortgage loans
Applicants need to submit these crucial documents to initiate the verification and loan approval process.
- Latest salary slips
- IT Returns
- Latest bank account statements
- Aadhaar and PAN card
- Proof of address
- Passport size photographs
Other than these, applicants must also submit all the vital documents pertaining to the property they intend to mortgage. Notably, the list of documents needed to apply for a loan against property may vary among financial institutions for different applicants. Intending borrowers should avail information about the same in due advance to streamline the process more effectively.
Eligibility criteria
Most financial institutions deem applicants possessing these following qualifications eligible for a mortgage loan.
- Resident Indians.
- Salaried applicants between the age of 33 and 58 years.
- Self-employed applicants between the age of 25 and 70 years.
- Must have a CIBIL score of over 750.
- A clean credit history.
- A stable source of income.
Notably, a financial institution may require applicants to fulfil additional requirements to be deemed eligible to avail a home mortgage loan. In fact, it is one of the things to know before applying for a loan against property to streamline the entire process more efficiently.
Hence, besides mortgage loan interest rates, individuals should also find out other important aspects of the secured loan to make an informed decision. Based on all the information, they should select a proficient lender and apply for the advance accordingly.
- A clean credit history.
- A stable source of income.
Notably, a financial institution may require applicants to fulfil additional requirements to be deemed eligible to avail a home mortgage loan. In fact, it is one of the things to know before applying for a loan against property to streamline the entire process more efficiently.
Hence, besides mortgage loan interest rates, individuals should also find out other important aspects of the secured loan to make an informed decision. Based on all the information, they should select a proficient lender and apply for the advance accordingly.
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