If you need a substantial amount of money and own land, a mortgage loan is an interesting choice to consider. People see a property as valuable only for renting or sale income
WHAT IS A MORTGAGE LOAN?
It is a loan that the bank (NBFC) leases you money and keeps your property as collateral, until the loan is repayed. It is a loan. The Mortgage loan is just as its name implies. You get the property back after you completely repay the loan. Should you fail to pay the loan, the creditor will connect the property to make sure the unpaid duties are recovered.
Mortgage loan is a common form of loan because it is one of the cheaper retail loans. It provides a lower interest rate relative to an individual loan and offers a greater loan over an extended period of repayment.
WHAT ARE THE CRITERIA FOR MORTGAGE LOAN ELIGIBILITY?
Each lender has its own criteria for Property Loan eligibility. However, in general, they could include:
Residency: Certain lenders want the applicant to be Indian citizen. This limitation does not apply to other lenders. Salaried NRIs can make use, subject to verification of property information, of a residential or commercial property loan.
Minimum net income: For employees and self-employed persons, the criteria could be different.
Minimum age: Some lenders demand that the borrower be at least 21 years old, but usually, at the time the credit is sanctioned the minimum age is 24 years. Maximum age varies according to work status.
Employment status: This includes self-employed, government employees or reputable private companies, or practitioners such as physicians, engineers, architects, dentists, chartered accountants, daily revenue management consultants.
Minimum loan amount: This depends again on the lender and the city of the property.
A decision is taken on your eligibility depending on the size of the loan, your repayment capacity and the value of the property that is mortgaged for the purpose of your loan.
WHAT ARE THE DOCUMENTS REQUIRED FOR A PROPERTY LOAN ONLINE?
It is necessary to get an accurate list of the required documents directly from your lender, but most lenders will require the following documents:
Application form
Photograph.
Identity Proof (could include passport, election/voter’s ID, permanent driving license, Permanent Account Number (PAN) card or Aadhaar Card.
Address proof ( could include passport, election/voter’s ID, permanent driving license, Society outgoing bill (only from registered societies), electricity/water/telephone bill, Gas bill (pipeline connection only), Property tax bill, Domicile certificate with address issued by Municipal Corporation.
Signature Proof.
Date of Birth Proof.
IT Returns & Balance Sheet & P/L Account statement for the last 2 years.
Business Continuity Proof for 5 years.
Bank Account Statements for the last 6 months.
Copy of papers of property to be mortgaged.
Note that there could be differences between the income documentation required from salaried employees and others.
HOW TO APPLY FOR A MORTGAGE LOAN ONLINE
You can download the application form from any of the lender's websites to apply for an online property loan application. You may also contact a bank representative by calling, sending sms or email the service centres. The decision could take up to a few weeks after you submit the application.