In today’s world, there is no end to the number of financial products that are available to help you achieve your goals. One such product is a mortgage loan, which enables you to leverage the equity in your home by converting it into cash. It sounds like an excellent opportunity for anyone who owns their own house and wants quick cash without having to sell it or take a second mortgage. Fortunately, there are several banks that are partnered with loanz99, offer loan against property (LAP) as a stand-alone product. It means that you don’t need another home loan or any other type of financing in order to get a LAP from them. Here is what you should know if you plan on applying for a mortgage loan...
What are mortgage loans?
Mortgage Loans in India are available from every bank and can be availed by salaried or self-employed people to help themselves in times of particular personal needs by mortgaging their property. It’s a secured loan. Usually, these loans are sought for business expansion, education, marriage, medical emergencies, or a vacation, and are sanctioned against residential, industrial, or commercial properties. However, the purpose of the loan must be clearly stated to the bankers. However, it may not be prudent to consider a mortgage loan amount for a home purchase, home construction, renovation, or a plot purchase.
How Does a Loan Against Property Work?
In order to get a LAP (Loan against property), you have to provide the lender with an appraisal of your home. You may need to have an inspection by an appraiser to make sure that the appraised value is accurate. This can help to protect both you and the lender if you decide to apply for a LAP. If your application is approved, you can then draw the loan amount against your equity in the home. You can repay the loan over several years. You should note that a LAP means that you have to pay interest on the money that you borrow. If you don’t pay the loan back on time, then the lender can foreclose on your home. Depending on the value of your home, they may make enough money to repay their loan and still have a profit.
Eligibility for mortgage loans
Eligibility criteria for salaried person
- Nationality: Indian
- Age Group: 28 to 58 Years of Age
- 3 years minimum of experience working for either public or private enterprises
Eligibility criteria for self-employed person:
- Nationality: Indian
- Age Group: 25 to 58 Years of Age
- Able to demonstrate a reliable revenue source.
Documents Required
Documents for salaried person:
Proof of residence:
- Ration Card
- Telephone Bill
- Electricity Bill
- Voter's ID Card
Proof of identity:
- Voter's ID Card
- Employer's Card
Salary Certificate (original) from employer.
Form 16/IT Returns for the past 2 financial years.
The most recent bank statement or passbook from which you can demonstrate that a salary or other income was credited within the previous six months
Documents for self-employed person:
For the previous three years, a certified financial statement
Proof of residence:
- Ration Card
- Telephone Bill
- Electricity Bill
- Voter's ID Card
Proof of identity:
- Voter's ID Card
- Employer's Card
IT Returns/Assessment Orders copies of the last 3 years.
The most recent bank statement or passbook from which you can demonstrate that a salary or other income was credited within the previous six months
Features and Benefits of Mortgage Loans
Features:
- Most completely built properties, like a home or a business outlet, are accepted by lenders.
- The property should be a freehold one, meaning that the owner has the complete legal right to transfer ownership, and it should be of marketable worth.
- A mortgage loan is categorized as a secured loan because the lender gives the loan amount in exchange for your property serving as security.
- Longer mortgage loan terms of up to 30 years are available, and they can be repaid in manageable monthly payments or EMIs.
- You can customize a mortgage loan to meet your needs.
Benefits:
- Given that they are secured loans, mortgage loans are frequently granted.
- Flexible repayment terms are available.
- As long as you use the loan money to meet your needs, you will still be the property's owner in legal terms.
- In comparison to personal loans, mortgage loans have substantially lower interest rates.
Why Loanz99?
With the help of Loanz99, you can choose a loan scheme and bank that will provide you with the most advantage and leverage while also being easy for you to repay. Once you've signed up with us, we'll walk you through the loan application, processing, and disbursement processes and make sure you obtain incentives like referral rewards, early-bird discounts, and alluring cash-backs.
Steps to get mortgage loans from loanz99
- Step 1: To get an instant mortgage loan, visit our website loanz99
- Step 2: You will find a form for a Quick apply loan.
- Step 3: Enter all your required details & submit the form.
- Step 4: You will be taken to successful form confirmation.
- Step 5: Loanz99 team will check your eligibility & will contact you for further details
The benefits of loanz99 in terms of home loans help you get access to your dream house with instant support from loanz99 team & with our partner banks. Apply your loan today with loanz99.
How is the Mortgage Loan Interest Rates in India Calculated?
- Mortgage loans are usually given at a higher interest than home loans within a range of 8%-15% Interest Annually. Only if a salaried employee draws a minimum of Rs. 40,000/- pm or a self-employed person draws Rs. 3 lakhs is eligible for a mortgage loan. The term of repayment is usually for a maximum of 15 years. An LTV of 60-70% is considered for a Loan against Property. Banks give Mortgage loans either on the property's market value or the registered value of the property, whichever is higher.
- To get a mortgage loan, you have to check your Loan Eligibility and the EMI you can afford with EMI Calculator. Then the property's legal documents must be verified. You then must decide on the interest offers from various banks and compare other charges and loan parameters of the banks you have shortlisted. Finally, select the financier based on the best service options.
- The eligibility of a mortgage loan applicant and the process of sanction are not very different from the other loans. The applicant's profile, creditworthiness, income flow, employment or business standing, LTV & FOIR are all legal considerations for the approval process. It usually takes around a fortnight for the sanction
You can calculate the EMI for your mortgage loan by using our EMI Calculator
Bank Interest Rates for Mortgage loan in 2022
| Bank | Interest Rates | Processing Fees | Tenure | Fore Closure | Process Time |
|---|---|---|---|---|---|
| HDFC Bank | 8.25% onwards | Up to 1.50% of the loan amount or Rs. 4,500 whichever is higher, plus applicable taxes. | Up to 15 years | NA | 10 day |
| ICICI Bank | 9% onwards (floating) | 1% of the loan amount | Up to 15 years | 4% on the principal outstanding* | 10 days |
| Axis Bank | 10.50% onwards (floating rate) | 1% of loan amount or Rs. 10,000 (whichever is higher) | Upto 20 years | Non-individuals – 3%, if the amount pre-paid exceeds 25% of the principal outstanding during a calendar quarter, else no prepayment penalty | 10 days |
| Indus Ind Bank | 10.75% to 14% | up to 3% | 15 years | NA | 10 days |
| Standard Chartered | Starting from 7.99% p.a. | up to 3% | 25 years. | NA | 10 DAYS |
| Yes Bank | 9.35% to 10.50% p.a. | 2% of the loan amount plus GST or Rs.10,000, whichever is higher | 25 years. | NA | 10 DAYS |
| Kotak Mahindra Bank | 6.65% onwards | 0.25%- 0.5% of loan amount and Statutory Dues + GST | Up to 20 years | For part prepayment made over 25% of the outstanding loan amt. – 4% of the excess prepayment amt. shall be charged | 10 DAYS |
| IDFC First | 8.15% | Up to 1% of the loan amount | Up to 15 years | Prepayment of more than 25%: 2%+ taxes and surcharge | 10 DAYS |
| Citibank | starting from 8.70%*p.a | Up to 0.75% of the sanctioned loan amount | Up to 15 years | 4% for first 3 years and 2% thereafter | 10 DAYS |
| SBI | 8.45% p.a. onwards | 1% of loan amount + GST (max. Rs. 50,000) | 5 – 15 years | Nil | 10 DAYS |
| Tata Capital | 10.10% onwards | 1% of the loan amount + GST | 1 – 15 years | 4% of the outstanding principal | 10 DAYS |
| Fullerton India | 7.99% onwards | Up to 3% of the loan amount | Up to 30 years | No prepayment charges for partial/full prepayment | 10 DAYS |
| Bajaj Finserv | 6.75% onwards | For salaried individuals: Up to 0.80% For self-employed individuals: Up to 1.20% |
Up to 20 years | No foreclosure charges for floating rate loans availed by individuals | 10 DAYS |