Are you planning to take a loan? Well, do you know that you can now skip all the hustle and opt for a mortgage loan, or better known as taking a loan against a property. Your property can now help fulfill all your dreams and help with your finances at less interest rate.
What is a Mortgage Loan?
A type of secured loan, that one can opt for by keeping their immovable asset as the mortgage with the lender, is known as a Mortgage loan. The asset kept as a mortgage can be residential/commercial or any other immovable property like heavy machinery.
A mortgage loan is available for which loan types?
Whether you are looking for a loan for a wedding, overseas education, business, or an unforeseen medical condition, you can finance yourself and opt for the Mortgage loan.
What is the tenure for mortgage loan repayment?
Mortgage Loan are long term advances, which have the repayment timeline ranging from 15-20 years and the loan against property interest rate is also much lower than other unsecured advances.
What is the loan against the property interest rate?
The interest rate for a mortgage loan is lower than the market rate and you can opt for any other two kinds of interest rate:
Fixed-Rate Mortgage: The Borrower, in this case, pays the same interest rate throughout the life of the loan, no matter the fluctuations in the market rate.
Adjustable-rate mortgage (ARM): The interest rate in this the case is not fixed and fluctuates based on the market interest rate.
What are the Key benefits of Mortgage Loan?
Loan against property has gained a lot of popularity owing to its key benefits which include:
- Utilization of the property for additional income.
- Easy withdrawal system along with lower interest rates.
- Longer tenure, thus smaller EMIS.
- Hassle Free Documentation and Repayment.
- Is available either as a term loan, demand loan, or overdraft.
- Loan is available up to Rs 10.00 Cr.
- Flexibility of money withdrawal, deposited earlier.
What are the eligibility criteria for a Mortgage loan?
A mortgage loan is available for both Indian Citizens as well as NRIs, however, the eligibility criteria for both vary.
For Resident Indians:
- The individual must be a professional, self-employed/Agriculturists employed/ engaged in business/salaried person for a minimum of 3 years.
- The Individuals must have a minimum gross annual income of Rs 3 lakhs.
For Non- Resident Indians
- Any NRI with an Indian passport and a regular employment/ business/self-employed for a minimum of 2 years.
- The individual must hold a valid job-contract/ work permit in a foreign country for a minimum of 2 years.
- The minimum gross annual income (average of the last 3 years) should bd 5 lakhs.
How can I apply for a Mortgage loan?
One can apply for the loan against property individually or jointly. All the owners of the asset will have to be co-applicants.
Mortgages are lucrative and come with a lot of variables, including tenure, interest rate, repayment, and many more. So, ensure that you read all the necessary documents and the terms and conditions, before going ahead with a mortgage loan.