A Complete Guidelines To Qualify For A Mortgage Loan
Mortgage loans are one of the most commonly availed financial tools used to finance numerous high-cost transactions or purchase such as higher education overseas, a lavish wedding or sudden medical expenses. Owing to the benefit of a mortgage loan, borrowers can fund their expenses well.
With the growing profitability in the business, the overall market for mortgage loan has witnessed an upsurge by 22% in the last fiscal that ended in March 2019. The amount peaks at 5 Lakh Crore, out of which NBFCs account for nearly half – 2.24 Lakh Crore.
It is the consecutive 4th time in a row that double-digit growth has been recorded in this sector. The success rate here has drawn a large number of lenders too. Besides, you can also avail tax benefits through your loan against property or home loan through this, which is why is has gained popularity among the borrowers.
What is a Mortgage Loan?
A mortgage loan is a simple loan where its borrower keeps his property as collateral with the financial institution to avail the loan. It is like a precondition which acts as a security for the lender.
These are generally long-term loans, and you need to repay the loan amount within a fixed time, which is usually 10 to 15 years or more. Periodic payments of the amount make it feasible and affordable for the customers to repay the whole amount conveniently.
How Do You Qualify For A Mortgage Loan?
As there is a wide variety of loan against property, people need to be aware of the same before availing one for them. They should assess their situation before they delve into one. The following points discuss the prerequisites to qualify for a loan against property, viz. –
For a salaried individual –
- The individual should be a resident of India.
- The borrower should be an employee of a private sector company, an MNC, or in the public sector.
- He/She should be between 33 and 58 years.
For self-employed borrowers –
- One should be a resident of India.
- He/She should be in the bracket of 25 to 70 years of age.
- The borrower should be self-employed, but with a regular source of income.
The goal is to simplify the eligibility criteria so that more individuals can benefit from the same and do not feel inadequate whenever they want to expand their lifestyle. Therefore, the documents required to avail a mortgage loan are also basis ones. They are mentioned hereunder –
- Identity Proof: Pan Card, Aadhaar Card, Voter ID, etc.
- Address Proof: Aadhaar Card, Utility bills (electricity, telephone, cylinder, etc), Voter ID, etc.
- Property Proof: Registration papers, documents related to mortgaged property.
Apart from these basic requirements, you would also need to provide documents as income proof irrespective of whether you are a salaried individual or a self-employed one.
As a salaried individual, you need to produce your recent salary slips, IT returns and account statements of the previous 3 consecutive months. Similarly, if you are self-employed, you will need to show the account statement of last 6 months as proof of income.
Make sure you know how your credit score affects your eligibility for a LAP; it is advisable to improve the score before applying for one.
Reasons To Avail Mortgage Loans
It is due to these benefits that individuals are drawn towards such loans. You are likely to receive the following benefits through mortgage loans.
- Hassle-free disbursal is the prime reason to avail this. It just takes 4 days for approval and final hand out.
- You can avail high-value funds through this loan.
- The flexible repayment period is an attractive bonus for self-employed individuals.
- Leading lenders offer online account access and management options with such loans.
Refer to lenders like Bajaj Finserv for such features as well as for pre-approved offers which help make availing loans easier and quicker. These offers are available on numerous financial products such as loans against properties, home loans, business loans, etc. Check your pre-approved offer today by providing only a few necessary details online.
Refer to lenders who not only offer affordable loan against property interest rates but additional repayment-friendly features such as no-charge part prepayment and foreclosure, etc. As we know, there are several types of mortgage loans available, hence it is better to choose which is best for you.
Home loans or loans against properties alike, mortgage loans can help you utilise the intrinsic value of your property to avail a substantial amount of funds as an advance at affordable interest rates.