Mortgage Loan is a secured loan against any residential or commercial property as collateral with the lending institution. Against 60% to 70% of the existing market value of the property, the loan amount is decided. Unlike other secured loans, you can continue to use the mortgaged property while repaying the loan. Mortgage loan or loan against property is very easy to avail and offers lower interest rate as the loan is secured against the property.
Features of Mortgage Loan
- The very easy and hassle-free loan process is involved when availing mortgage loan.
- For mortgage loan, you can get a high loan amount to fulfill your monetary need.
- Mortgage Loan interest rate is quite low.
- No hidden charges are there for mortgage loan or loan against property.
- Loan repayment tenure ranges up to 15 years.
- You can use mortgage loan for child’s higher education, any medical emergency, business expansion or wedding purpose.
- Not only residential property but also commercial property can be kept as a security against mortgage loan.
- Both salaried, as well as self-employed individuals, can opt for the mortgage loan.
- A quick evaluation of the Mortgage Loan EMI calculation.
- You can use mortgage loan for both personal and business purposes.
Eligibility for Mortgage Loan
Following eligibility criteria must be fulfilled for applying for a mortgage loan-
- The applicant must have Indian citizenship
- Age- The minimum and maximum age limits are 21 years and 65 years respectively
- Employment type- Salaried and self-employed individuals
- Net Monthly Income- Rs. 40,000 for salaried individual and Rs. 3 lakh annually for self-employed individuals
- Tenure of Loan- Up to 15 years
- Employment Status- Minimum 3 years of job experience for salaried people. Minimum 5 years of business experience for self-employed people.
- Credit score- 750 or above. Depending on whether the registered property value or the market value is lower, banks provide a mortgage loan.
- LTV- LTV value differs with property type.
- Banks give mortgage loan with LTV of 60% to 70% for residential property.
- LTV of 50% to 55% for industrial property
- LTV of 60% to 70% for commercial property’s
Documents required for Mortgage Loan
- 2 Passport size photo
- Duly filled the application form.
- ID Proof- PAN Card, AADHAR Card, Driving License, Voter ID Card.
- Residential Proof- Passport, Leave and License Agreement, Utility Bills like Gas or Electricity bill of last 3 months.
- Income Proof
- For Salaried- Last 6 months bank a/c statement, Pay Slip of last 3 months, Cheques for processing fees of the loan.
- For Self-employed- Bank account Statement of last 6 months, ITR file of last 3 years, Balance Sheet and Profit & Loss account of last 3 financial years, Business Continuity Proof, License certificate of the business.
Mortgage Loan Rate of Interest
There are two types of interest rate that is charged for a mortgage loan-
Flexible Interest Rate-This type of interest rate varies accordingly with the market fluctuations. Initially, the interest rate remains fixed. But with time, the rate of interest varies with the economic changes and the interest lending rate of the bank.
Fixed Interest Rate-This type of interest rate not fluctuate with the market conditions and remains fixed throughout the tenure of the mortgage loan.
Mortgage Loan Interest Rate for top 5 Banks
|Name of the Bank||Mortgage Loan Rate of Interest||Processing Fee|
|SBI||10.30%||Up to 1%|
|Indiabulls||10.50%||Up to 1%|