Consider what you have always wanted to do. It could be buying a house or starting a business. Sometimes, however, it can be difficult to turn dreams into reality due to lack of funds. A mortgage loan might be an option to help you manage your finances.

An Overview of a Mortgage Loan

A mortgage loan is also known as a loan against property or a loan against real property. It is a secured loan that is sanctioned against immovable assets or property. This could be a property or plot of land, commercial property or a house. You have the option of keeping the asset as collateral or borrowing funds from the lender.

You can use the money you get for a variety of purposes, including buying or renovating a home, paying for a child’s education or financing a start-up, taking a vacation or covering medical emergencies. The collateral asset will be held by the lender until the loan amount is fully paid.

Loan Against Property: Features & Benefits

A mortgage loan is one of the most preferred loan options for borrowers. It does not have any restrictions on its usage. There are many other reasons why it is so popular. These are some of the most important features and benefits associated with a loan against your property.

High Loan Amount

Based on the current market value, the loan amount will be determined. A total amount of 70%-75% can be obtained for a property that has been used as a mortgage.

Flexible Tenor

The payback period for mortgage loans is much longer. Lenders have the option to extend their repayment term up to 18 years. This gives them ample time to plan for the payment.

Attractive Rates of Interest

Because they are secured, the interest rates on mortgage loans usually have low rates. These loans are secured by high-value assets, which reduces the risk for the lender.

Smaller EMIs

Property loans have a flexible repayment tenor which means that the monthly EMIs are usually low. To calculate your monthly EMIs, you can use a mortgage loans calculator. An online mortgage loan calculator makes it easy to calculate your monthly EMIs and gives accurate results.

Tax Benefits

Section 37(1) and Section 24, respectively, of the Income Tax Act 1961 allow you to receive income tax benefits for mortgage loan interest rates.

Quick Processing

Lenders will approve loans within 72 hours after you apply, provided that all eligibility requirements are met.

Mortgage Loans: Eligibility Criteria

Lenders may have different eligibility criteria for mortgage loans. The common qualifications that all borrowers must meet are listed below.

  1. You must be an Indian citizen
  2. For self-employed persons, the age limit for eligibility is 25 to 70.
  3. You should have steady income
  4. Minimum 3 years experience is required to be employed in an MNC or private sector.

For a smooth experience, ensure you have read the eligibility criteria before applying for a loan to purchase a property.

How to Apply For a Mortgage Loan

Two ways to apply for a property loan are available. Either you visit the branch nearest to you or visit the website of the preferred lender. These are the steps for applying online:

  • The online portal has a page titled “Mortgage Loan”.
  • Check your eligibility
  • See the list of documents required to apply for a loan
  • To avoid errors, enter all information and double-check any details.
  • To submit your loan request, click on the “Apply Now” button
  • After thorough verification of all details, the lender will contact you
  • After verification, you will be able to receive the loan in 3-4 days.

Online application is faster and easier than traditional methods. You can apply for mortgage loans anytime you want. The customer service representatives are available 24/7 to answer any queries.

Before you submit an application, be sure to understand the meaning of a mortgage loan and how it can benefit your financial planning. Sticking to a loan amount you can afford to pay off at the end is a smart idea. Compare different interest rates on mortgage loans to find the best deal.

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