Mortgage Loan
A mortgage loan is also known as a Loan Against Property (LAP). One of the most secured loan types offered is the mortgage loan. It is a collateral-based loan where funds are raised against the collateral property that’s used as security for the loan. Typically, mortgage loan interest rates are lower than other types of secured loans. The market value of property and repayment capacity determine the mortgage loan disbursement amount. ROI typically ranges from 8.15% to 12.80% per year, or even lower for those with highmark credit score. The loan payback terms can last up to 15 years. It can be especially advantageous as it makes the monthly payments more manageable, ensuring you can comfortably meet your financial obligations while enjoying the pride of homeownership.
Benefits
- Hassle-free Documentation
Simplified documentation process
- Flexible Tenure
Tailoring tenure to fit your unique financial needs
- Quick Approval
Swift decisions, instant solutions
- Low-interest rate
Experience financial freedom with our low interest rate loans
- Secured loan
Secure your future with ease, discover the simplicity of our secured loans
Features
Loan tenure :
Tenure ranges from 5 years to 30 years.
Private Mortgage Insurance(PMI) :
When the down payment is less than 20% of the property value, the lender requires insurance. PMI safeguards the lender in the event of a default.
The lender assesses the borrower’s finances and creditworthiness to determine the maximum loan amount.
Mortgage points :
Mortgage points are a set of early fees that you might pay to get a better interest rate.
Factors Considered by Lenders for Calculating Eligibility
- Profile of income and professions: A higher salary indicates a higher capacity to pay back loans. Also, this minimizes the risk for lenders. Due to their regular income and high level of certainty, salaried employees at MNCs, reputable private sector companies, the government, and self-employed professionals like doctors, CAs, traders, etc. have a higher chance of obtaining loans against property at lower rates of interest.
- Age: Applicants for loan against property typically need to be at least 21 years old, while the maximum age at the time of loan maturity is commonly set at 70 years. The borrower’s retirement age often limits the repayment period for LAP to 20 years. Younger individuals, therefore, have a higher chance of getting LAP over a longer period.
- Potential of repayment: Most lenders demand that their loan applicants total EMIs, which include the EMI of the loan they are proposing, be under 50–60% of their net monthly income. Your LAP EMI can be decreased by choosing a longer loan term; thus, candidates with a lower loan against property eligibility can increase it simply by doing so.
- Property value: The property’s age, location, legal status, title deed, approval from the local authorities, etc. are all taken into consideration by lenders when considering a borrower’s eligibility for a loan against property. Lenders will reject applicants for loan against property who do not meet the property-related conditions.
Documents required for Mortgage Loan
- Salaried :
- PAN card, Aadhar card, Telephone bill, and Electricity bill
- Form 16 for the latest 2 years
- Latest salary slips for 3 months
- Latest 6 months bank statements
- Self Employed :
- PAN card, Aadhar card, Telephone bill, and Electricity Bill
- Certificate and Proof of business registration
- Last 3 years Income Tax returns.
- Last 12 months bank account statements.
- GST Return.
- Original title document for the asset pledged as security
Note: This is an indicative list that may vary depending on your unique loan application.
Mortgage Loan Interest Rate 2024
| Bank Name | Interest Rate Range | |
|---|---|---|
HDFC Bank
|
9.50% – 11.00% p.a | APPLY |
IDFC First Bank
|
9.00% - 20.00% p.a | APPLY |
HSBC Bank
|
9.75% p.a onwards | APPLY |
Kotak Mahindra Bank
|
9.15% - 10.50% p.a | APPLY |
PNB Housing
|
9.25% - 12.45% p.a | APPLY |
State Bank of India
|
10% - 11.55% p.a | APPLY |
Federal Bank
|
12.60% p.a | APPLY |
Bank of India
|
11.25% p.a | APPLY |
Bank of Baroda
|
10.85% - 16.50% p.a | APPLY |
Central Bank of India
|
13.75% p.a | APPLY |
Bank of Maharashtra
|
10.95%–11.95% p.a | APPLY |
Frequently Asked Questions
A mortgage loan is a secured loan provided by financial institutions against freehold residential and commercial properties. It can be used for personal and business needs.
According to LAP, the maximum funding you can borrow is upto 60% of the property market value.
According to LAP, the maximum funding you can borrow is upto 60% of the property market value.
If you can't make your mortgage payments, you risk defaulting on the loan, which can lead to foreclosure. Foreclosure is a legal process by which the lender takes possession of the property and sells it to recover the unpaid balance of the loan.
A home loan is a type of mortgage that is used to purchase a residential property. A mortgage is a legal agreement that uses a property as collateral for a loan.
If you can't make your mortgage payments, you risk defaulting on the loan, which can lead to foreclosure. Foreclosure is a legal process by which the lender takes possession of the property and sells it to recover the unpaid balance of the loan.
Yes, you can refinance mortgage loan to get a lower interest rate, reduce the term of the loan, or take cash out of the equity in the property. Refinancing can be a good option if interest rates have dropped since you obtained your original mortgage loan.
Yes, Loan Against Property (LAP) can be availed against a fully constructed and freehold commercial properties
The mortgage loan interest rate is typically based on the borrower's credit score, the size of the down payment, the type of property being purchased, and current market conditions.
Private mortgage insurance (PMI) is insurance that is required for borrowers who make a down payment of less than 20% on a conventional mortgage loan. PMI protects the lender in the event that the borrower defaults on the loan.
A mortgage pre-approval is a process where a lender reviews a borrower's financial information and credit history to determine how much they are eligible to borrow for a mortgage loan. A pre-approval can help borrowers understand their budget and make a stronger offer when shopping for a home