What is a Mortgage Loan?
The mortgage loan is one kind of secure loan in which the applicant submit assets like a home (residential) or any other commercial property as collateral to avail the loan amount. On a common note, the loan amount would value 40% to 60% of the properties submitted. You can pledge a property and avail a loan upto 5 crores. The collateral submitted will stay with the lender, and if in case the borrower doesn’t make the return payments, then the lender has the right to sell the property.
Features of Mortgage Loan
Zero Prepayment and Foreclosure charges
Taking up a mortgage loan tends to be maximum savings for the borrower as there are no prepayment and foreclosure charges.
Long Tenure
The repayment tenure for Mortgage loan customers varies with the nature of the profession. For salaried individuals can range up to 30 years, and for self-employed, it could fall up to 18 years.
Quick Process
The team at Fincover makes our full efforts to quickly process the loan request. The documentation process around Mortgage loans is very simple.
High amount - Reasonable Interest
The interest rate varies from the lenders; on a general note, the number falls from 11% to 15%. People get to apply for huge value loan amounts with Mortgage loans.
Documents Required
The below-given documents are to be submitted for Mortgage loans.
- Bank statement
- Salary slip & IT returns (salaried applicants)
- Address proof
- Property Documents
- Identity proofs (Aadhar card & PAN card)
Eligibility
- Indian Citizen
- Working experience of 3 years (Salaried applicants)
- Proof for Steady income (Self-employed applicants)
Frequently Asked Questions on Mortgage Loans
1. What is the maximum amount one can apply for in a mortgage loan?
The maximum amount you can apply for depends on the bank or financial institution and the type and market value of the property you are pledging as collateral. Each lender sets their own loan-to-value (LTV) ratio limits.
2. Does my age and salary affect my mortgage loan eligibility?
Yes. Age and income are important eligibility factors. Younger applicants with a stable income and secure job are typically considered lower risk. The nature of your employment, salary, and financial commitments will also be evaluated to determine your repayment capability.
3. Can the loan amount received be used for multiple purposes?
Yes, mortgage loan funds can be used for a variety of purposes, including business expansion, education, wedding expenses, or medical emergencies. However, it is advised to plan your expenses carefully before availing the loan, as it is secured against your property.
