Mortgage Loan in India
We can define mortgage loan in simple term is loan against property that means as mortgage applicant have to put type of security or property whether it us gold, insurance or other securities to buy real estate. This type of loan is totally secured loan on borrower’s property. There is term mortgage origination which means the loan is secured on borrower’s property through a process.
“In Mortgage loan borrower giving simple consideration in the form of collateral for a benefit.”
Mortgage has limitations on the right to property like as an easement. In many countries this mortgage system used to finance private ownership of both commercial and residential property. The terminology and format for forms will also vary from country to country but basic components tend be similar like:
Mortgage loan is loan against fully constructed, commercial and freehold residential properties for :
- Business Needs
- Personnel needs, medical expenses and marriage
- You can transfer your outstanding loan availed from other financial institution or other bank in Mortgage loan
Mortgage loan has small EMIs and Longer tenure
Have attractive interest rates
Simple and easy documentation
You can repay simply by monthly installments in Mortgage loan
Integrated Branch network
Best servicing for the loan anywhere in INDIA
Mortgage Loan Reducing Term Assurance (MRTA): The term MRTA protects the applicant’s and their family from paying off the applicant’s debt if in applicant is sudden demise.
For Mortgage Loan banks also provides an option i.e. intra balance transfer which allows their customer to transfer one to another comparatively at lowest rates.
It also gives customers an option they can easily applying for top up along with balance transfer option.
Loan against Property (LAP)
Instead of letting our property idle keep work on it. Apply for a loan against your property with help of Future Finance and use it for any purpose as you need like business needs and acquiring assets. This loan can be against existing residential and commercial property or plot, the loan can be avail from 5 lakhs – up to 10 Cr.
- Loan for Purchase of Commercial Property:
Mortgage loan avail the purchase of Commercial property loans to purchase fully ready or under construction. Avail of Mortgage loan is from ` 5 Lacs up to ` 10 Cr. There are two variants under these terms
- Loan to purchase readymade commercial property
- Loan to purchase Under-development property
- Lease Rental Discounting
This term enables customer to en cash your current rental cash flows. You may be use funds for Business Expansion, Business Capital Requirements etc.
The best basic purpose for mortgage loan is usually taken are meeting individual requirements like spread business, education needs, accruing assets, marriage by mortgage property plot.
- Purpose for granting
- Medical emergency
- Some extensive personal expenses either wedding or vacation
- Child education
- Most important Business Expansion
- Purpose for Not Granting
- Purchasing of home and construction
- Home decor and renovation
- Plot purchase
Eligibility for Mortgage Loan
If you are applying for Mortgage Loan in Ahmedabad then in order to this you need to fulfil some minimum eligibility criteria in this following factors are considered
- What is total income
- Must be minimum age of 21 years
- Number of dependents on you
- Is there any existing liabilities
- Total work experience including current job
- Your financial documents
- For mortgage loan both salaried and self-employed individuals are eligible.
Documents differ for both salaried and self-employed.
- If you are salaried individuals you have to need submit following documents :
- A filled loan application form with passport size photos
- For Identity proof need voter card, driving license, PAN card, Passport etc.
- For Address proof need Aadhar Card, Telephone and electricity bill, Raashan Card etc.
- Latest Salary Slip with latest Form 16 issued by employer
- 6 Months bank statements
- Processing fee cheque.
- If you are Self-employed you have to need submit following documents :
- Application form with recent passport size photographs
- ID Proof
- Proof of existence of Business
- Education Qualification Proofs
- Last 3 Years Certified financial statements
- Last 3 year profit and loss statements
- Bank statement of last six month
- Processing fees
Types of Interests Rates for Mortgage loans
Interest rates applicable for mortgage loans in India are several types.
- Fixed Rate Mortgage (FRM) :
In Fixed Rate you need to pay the same amount and fixed rate of interest for whole loan tenure. You can’t opt for interest change.
- Adjustable Rate Mortgage (ARM) :
In other hand Adjustable Rate Mortgage interest rates changes as per economic fluctuation.
Process for Mortgage loans
Normally for the Mortgage loan following steps involve in complete process :
- Collection of Essential documents for loan process
- Credit appraisals from bank
- After credit check and verification of information loan sanction will be provide
- Delivery of sanction letter by post or on Email-id
- Request for disbursal
- All Property documents collection by bank
- Legally examined of documents
- After successful verification a disbursement cheque must be prepared and delivered
Loan against Property Features and Benefits
- Mortgage is cost effective of borrowing normally you can take for long time period and may be repayment by using just smaller monthly EMIs.
- This loans charge lower ROI on borrowings amount than other loans. Obviously this is secured loan and secured against property.
- Mortgage loan is a secured loan. It is secured against your property. The bank or lender has the right to repossess your property if you can’t repay your loan.
- If you can afford to buy home then this loans help you to buy own house, you may get this loan against constructed property and commercial properties
- Repay your loan in with simple repayment process as monthly EMI’s
- Received Funds can be used for both personal and business