What is a Mortgage Loan
A mortgage loan is a secured loan and used to purchase or maintain a home, plot of land, or other real estate. A mortgage is an agreement between you and a lender, the lender will use the home as collateral against a possible default in the future. The amount of funding will be up to 70% of the registered value of the property and an interest rate on mortgage loans starts from 9% to 20% p.a.
How does a Mortgage Loan Work?
A mortgage loan is a contractual agreement where a borrower pledges property to a lender as security for a loan. Borrowers are then required to repay the loan, generally in monthly EMI, which include both the principal amount and mortgage interest rates. Mortgage loans are also known as loans against property and used to purchase or maintain a home, plot of land, or other real estate. There are no foreclosure charges if the loan is paid after 36 months.
Mortgage Loan - Features and Benefits:
- Mortgage loans come with attractive interest rates.
- Get a loan for a longer tenure.
- Loan amount used to purchase or maintain a home, plot of land, other real estate and business as well as personal needs.
- Repay your loan with a smaller monthly EMIs.
- You can choose interest rates to pay off your loan with floating rates, fixed interest rates, interest-only mortgage and Payment option ARMs.
- Residential and commercial properties are accepted by banks as collateral for mortgage loans.
- Easy and Simple documentation process.
Eligibility Criteria for Mortgage Loan
- The criteria may vary from bank to bank, some of them listed below to determine your eligibility:
- Gross annual/monthly income
- Minimum age requirement of 21 years
- Valuation of your property
- Income proof documentation
- Existing liabilities
- Number of dependants
- Both salaried and self-employed are eligible for a mortgage loan.
Document required for Mortgage Loan
- Mandatory Documents: PAN Card or Form 60 (If the customer does not have a PAN Card)
- Identity Proof and Address Proof: Any one of the following documents can be submitted
- Aadhaar card
- Passport, the validity of which has not expired
- Driving license which has not expired
- Election / Voters identification card, NREGA Job card signed by the officer of the State Government
- Income Proof: Salary slips, Latest Form-16 and IT returns, Bank statement
- Property Documents: Sale agreement, property tax receipts
- Approved plan if applicable
How to apply for a Mortgage Loan online
- Make your application process smooth by keeping these documents handy:
- Visit webonlineca.com website and visit Loan Against Property service
- Fill a simple online Loan Against Property application form with your basic details
- Submit the required documents
- Enter your property location
- Once done, you will receive a call from our team and guide you on the next steps
- The loan amount will be disbursed in your bank account after document verification
FAQs About Mortgage Loan
Can I use a mortgage loan for my personal or business needs?
Yes. The sanctioned loan amount can be used to purchase or maintain a home, plot of land, other real estate and business as well as personal needs. However, it's important to get in touch with the lender for additional information. For instance, some banks don't offer a mortgage loan for individual use.
What is Loan Against Property (LAP)?
A Loan Against Property is a Secured Loan, where you can mortgage your residential or commercial property to get funds for any purpose, business expansion, child's higher studies, wedding or medical emergency.
Who can apply for a Loan Against Property (LAP)?
Any Resident Indian salaried or self-employed individual can apply for a Loan Against Property as long as you meet our eligibility criteria.
What types of properties would be considered as collateral for Loan Against Property?
All types of properties such as residential, commercial, industrial, plots, schools, hospitals, restaurants, godowns, etc.
Which documents are required to avail a loan against property?
Along with application form you need Passport / Driving License / Aadhaar Card / Voter's ID card / NREGA JOB Card, PAN Card, Bank statement, Salary Slips and property documents.
What is the interest rate for loan against property?
Loan Against Property interest rates depend on the loan amount and the loan tenure, starting ranges from 8.25% to 24% p.a.
How long will the process for loan approval be?
Loan approval would take 5 working days after submission of the application form and required documents.
Can I foreclosure my loan?
Yes, you can foreclosure your loan post completion of 12 months. Self-employed individual availing a loan against property with floating interest rate enjoys nil foreclosure charges.
Do I need a guarantor to avail of a loan against property?
Generally you do not need a guarantor. You may require a guarantor or co-applicant if your financial strength is weak.
What is the maximum loan tenure?
We offer Customized EMI repayment options with a maximum tenure of 15 years.