Mortgage Loan

A mortgage loan allows you to access funds by pledging an immovable asset as collateral. This can include your land plot, house, or commercial property. Generally, the mortgage interest rate levied on mortgage loans starts from 9.25% p.a., and the repayment tenures can range up to 25 years. Moreover, you can borrow a sum equivalent to as much as 80% of the property’s registered value. Once you have paid the loan amount along with interest, the lender transfers back the title of your immovable asset.

Here are various things you can use the loan amount for:

• Purchase a new home or property

• Renovate or upgrade existing property

• Consolidate high-interest debts

• Fund business expansion or needs

• Pay for large expenses like education or medical bills

• Refinance an existing mortgage for better terms

So, you can use the loan amount to meet almost all your personal and business requirements. Reach out to your lender and discuss your reason for taking the loan for more clarity.

Various financial institutions offer mortgage loans at competitive interest rates. However, mortgage interest rates vary depending on the lender and the type of mortgage loan you choose. Here is a complete list of the loan against property interest rates offered by top lending institutions on Bajaj Markets:

*Disclaimer: The mentioned details are subject to change at the lender’s discretion.

There are five different types of mortgage loans in India:

• Loan Against Property: These loans are generally offered against commercial and residential property as collateral and can be repaid via EMIs

• Loan Against Commercial Property: Generally opted for by businessmen, these loans are offered against commercial spaces (shops, offices, and so on) as collateral

• Lease Rental Discounting: This loan is offered against leased spaces pledged as collateral. The monthly rent is packaged as an EMI, and the loan is disbursed accordingly.

• Second Mortgage Loan: If you have already purchased a property via a loan, you can opt for an additional loan on the same property. In this case, you will have to repay both EMIs simultaneously.

• Reverse Mortgage: It is meant for senior citizens who already possess property and can mortgage the same with a bank. When pledging this property as collateral, they receive a fixed sum of money every month.
  

Based on legal frameworks, here are the different types of mortgage loans available in India:

• Simple Mortgage: In this type, the borrower retains possession of the property while providing the lender the right to sell it in case of default. The mortgage deed must be registered.

• Usufructuary Mortgage: Here, the borrower transfers possession of the property to the lender, who can use it and earn income from it. The lender must return the property after the loan is repaid.

• English Mortgage: Defined under Section 58(e) of the Transfer of Property Act, 1882, this type involves a complete transfer of ownership to the lender until repayment is made. The borrower retains no rights to the property during this period, making it a less common choice due to its complexities and risks.

To qualify for a mortgage loan available on Bajaj Markets, you must fulfil the following requirements:

• Your age must be between 21 and 70 years

• You must have a minimum monthly income of ₹30,000 

• If salaried, you must have a work experience of at least 1 year

• If self-employed, you must have a work experience of at least 2 years

Do note that these are some common criteria most lenders would require you to meet for the loan. However, they may vary depending on the loan provider’s policies and discretion. Ensure to get a complete list of the requirements from your lender prior to applying for the loan.

The paperwork you need to submit when applying for a mortgage loan is as follows:

For Salaried Individuals

• Identity Proof

  • PAN card

  • Aadhaar card

  • Voter ID

  • Passport

  • Any other government-issued credential

• Address Proof

  • Voter ID

  • Aadhaar card

  • Passport

  • Utility bill

  • Ration card

  • Any other government-issued proof

• Income Proof

  • Latest ITR

  • Form 16

  • Salary slips of the last 3 months

• Property Documents

For Self-employed Individuals

• Identity Proof

  • Aadhaar card

  • Voter ID

  • Passport

  • Any other government-issued credentials

• Address Proof

  • Voter ID

  • Aadhaar card

  • Passport

  • Utility bill

  • Any other government-issued proof

• Income Proof

  • Audited financials of the company

  • Bank statements for the last 6 months

  • ITR filed by the business

• Property Documents

You may be required to submit some additional documents. Be prompt and submit the requested paperwork to avoid any delays in the processing of your application.

Before you apply for a mortgage loan, keep in mind the following factors:

• Mortgage Loan Interest Rate

  Compare interest rates across lenders to find the most affordable option

• Loan Tenure

  Choose a repayment tenure that aligns with your financial stability and long-term goals

• Loan-to-Value (LTV) Ratio

  Understand the percentage of the property’s value you can borrow, as it impacts the loan amount

• Processing Fees and Charges

  Be aware of any additional fees, such as processing charges, that may increase the total cost of the loan

• Property Valuation

  Ensure that your property is accurately valued. This will have a major impact on the LTV ratio and thus, the loan amount offered to you.

• Repayment Capacity

  Assess your financial ability to repay the loan. Consider your current income and expenses before making any financial decision.

To apply for a mortgage loan, follow the steps listed below:

• Submit the documents needed for the mortgage and application form to your lender

• The lender will undertake a credit appraisal

• They will then proceed to verify and authenticate your personal information

• After this, you will receive a letter sanctioning your application at your registered address

• Once your request for disbursal is received, your property-related documents will be collected

• Your property-related documents will be examined

• Once verified and approved, you will receive your mortgage loan

In conclusion, if you wish to access funds quickly and at lower interest rates, a mortgage loan is a great option. To get the loan, you just need to pledge your immovable asset (residential or commercial property) as collateral. With these loans, you can enjoy low mortgage interest rates. Moreover, you get the title of your property back when you pay back the loan amount and interest.