Mortgage Loan

A mortgage loan is a secured loan provided by the banks and NBFCs that allow borrowers to put their immovable property as a mortgage. Most of the banks and NBFCs finance mortgage loans up to 75% of the property’s value where the funds are provided against the security of your property. You can take a mortgage loan against both your residential and commercial property at low-interest rates.

Some of the feature and benefits of Mortgage loan are as follow:

• Mortgage Loans are secured loans that can be obtained against both commercial and residential property. Applicants can put up a commercial, residential, or even an empty plot as collateral for a loan against property.
• The interest on mortgage loans is lower than an unsecured personal loan and starts at 7.20%.
• A mortgage loan can be availed by salaried with a regular source of income, self-employed and businessman with business stability of minimum 3 years.
• The loan amount enerally ranges from ₹ 10 Lakh to ₹ 10 Cr. Usually, the loan disbursed is around 75% of the market value of the property.
• A mortgage loan can be used for a child’s education, the medical emergency wedding of your child, travelling business expansion and many other purposes.
• The prepayment charges on the Mortgage loan are Nil under floating rate option.
• You can get a mortgage loan with a CIBIL score of 650 and above.
• A Mortgage loan can be repaid over a longer tenure as compared to other loans for as long as years.

The eligibility criterion of Mortgage Loan differs from one bank to another. However, some common eligibility criteria are:

• The individual should be Indian/NRI/PIO.
• Minimum age of the applicant should be 18 years.
• Maximum age of the applicant should be 70 years.
• The applicant Should have a good credit score.
• Applicants should have a regular source of income.

Some of the documents required to avail the mortgage loans are listed as follows:

• Mortgage loan application form
• Photographs
• Age proof such as PAN Card, Passport, Aadhar Card
• Address proof such as Passport, Driving License, Telephone Bill, electricity bill, and Election Card
• Income proofs such as latest salary-slips for 3 months for salaried and proof of business existence for self employed
• Income Tax related document like Form 16 for last 2 years for salaried and Income Tax Returns of the last 3 years (self and business) with Profit and Loss Account and Balance Sheets
• Bank Statements of the last 12 months for salary account in case of salaried and for self and business account in case of self employed
• Property documents such as NOC, registration papers and municipality certificates among others.

✅What is the meaning of mortgage loan?

Mortgage loans refer to those loans in which a borrower secures the credit by pledging security. Generally, the amount of loan is around 60% to 74% of the value of the security pledged as collateral.

✅Which bank is best for a mortgage loan?

The top banks for Mortgage loans are Citibank, Jammu And Kashmir Bank, Karnataka Bank, HDFC, SBI. Individuals can apply for mortgage loans of these banks through MyLoanCare.

✅How long is a mortgage loan?

The maximum tenure of the mortgage loan is 25 years. This however may vary across lenders and may be dependent on their terms and conditions, and on other factors such as the borrower’s age, loan amount requirement and financial capabilities.