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Mortgage Loan

A person or Company can apply for a Mortgage loan to Banks of Financial Institutions to Property Purchase, Home, Land etc. A mortgage loan called as Loan against property also. There is no need of specific purpose to apply mortgage loan to Banks or financial Institution. So borrower can use the debt to any purpose. The borrower should repay the debt with principle and interest. The tenure of the repayment period, usually less than 15 years.Every borrow will look the interest rate before applying the mortgage loan to Banks or Financial Institutions. The interest rate will based on the borrower financial statements, CIBIL score, current repayment of existing loans with Banks. The Banks or financial institution having power to take possession of your property in case of stop paying repayment by auction the property. After done the repayment of loan , the property will be on your own name and there is no encumbrance to that property.

Compare Rate of Interest & Processing with Banks

Bank/NBFC Rate of Interest Loan Processing Charges
HDFC BANK 10.5% onwards 0.5% of loan amt. or Max. Rs. 10,000
ICICI BANK 9.7% onwards 0.5% of loan amt.
AXIS BANK 9.75% onwards 0.25% + ST
INDIABULLS 10% onwards 1%
DHFL 10.25% onwards 1%
LIC HFL Upto 1 Cr - 10.50%; 1cr to 3 cr 10.80%; 3 cr to 5 Cr 11% Govt Emp- Rs 1000 + ST, Others Rs2500+ST
PNB HFL 10.25% onwards Rs 10000 for salaried / 0.50% for self employed
TATA CAPITAL 11.25% onwards 1%
CITIBANK Salaried :10.00%  and Self Employed :Upto 1 Cr 10%, 1 Cr to 3 Cr 9.75%, Above 3 Cr 9.5% 0.25

Documents Required for Mortgage Loan

Documents required

  • 1

    Individual Salary

    • 1 Photo for Applicant & Co Applicant
    • PAN Copy - Self Attested
    • Aadhar Copy - Self Attested
    • Employee Identity Card
    • Form 16 ( if available )
    • Bank Statement Last 6 Months
    • Pay Slip Last 3 months
    • Income Tax Filing for two years ( Optional )
    • Sale Agreement
    • Property Documents
    • Enumberence certificate
    • Building Plan approval
    • Property Tax Receipt Latest
  • 2

    Other than individual Salary

    • Photo for Director / Partner / Proprietor
    • PAN Copy of the Directors / Partners & Organization PAN Copy
    • Aadhar Copy of the Directors / Partners
    • 1 Year Bank Statement
    • Incorporation Certificate / Partnership Deed
    • Telephone Bill
    • EB receipt of Own house in name of applicant / Guarantor
    • Income Tax Filing for two years ( Optional )
    • MSME Registration / GST Registratioin for Business Proof
    • Sale Agreement
    • Property Documents
    • Enumberence certificate
    • Building Plan approval
    • Property Tax Receipt Latest

HOW LONG DOES IT TAKES?

1 DAY

Collection of Documents

1 DAY

Preparation of Application

1 DAY

Submission of Application

1 DAY

Approval of Persoanl Loan

Frequently Asked Questions

What can Loan against Property be used for?
Any loan against a residential or commercial property can be used for both personal and business purposes. In fact, you can use it for anything other than speculative or non-prohibitive activities.
How does the lending bank decide on the amount I can get as loan against property?
Basically, the bank looks at your repayment capacity. For calculating the loan amount, your income, age, qualifications, number of dependants, spouse’s income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration. However the eligibility of loan does not, generally, exceed 60 percent of the market value of the property.
Can there be a co-applicant for loan against property? If yes, who can be co-applicant?
You can include your spuse as a co-applicant and that results in a higher amount being lent. However, if the property is co-owned, all co-owners mandatorily need to be co-applicants.
what are the processing fees for such a loan?
Processing fee for loan against any property varies from bank to bank and is generally around 1 percent. 
How is the rate of interest on loan against property calculated?
Interest is calculated on daily reducing balance. Your monthly out-go (equated monthly installment – EMI) is much lower as compared to the interest on annual reducing balance.
What is the tenure of the loan?
Loans against property has a maximum tenure of 15 years, subject to the condition it does not exceed your retirement age. This condition however can be flexible in certain cases
How to repay my loan?
You repay the loan in Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement.
How to repay my loan?
You repay the loan in Equated Monthly Installments (EMIs) comprising principal and interest. Repayment by way of EMI commences from the month following the month in which you take full disbursement.
What security will I have to provide?
As the name implies you need to mortgage your property for availing this loan. This mortgage is Equitable mortgage by Memorandum of Entry by way of deposit of title deeds and/or such other collateral security, as may be necessary. Collateral security for by way of assignment of insurance policy or any such other assignable financial instruments are also required, as security to loan if deem necessary by the Bank. Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely. 
Can I repay the loan ahead of schedule?
As the name implies you need to mortgage your property for availing this loan. This mortgage is Equitable mortgage by Memorandum of Entry by way of deposit of title deeds and/or such other collateral security, as may be necessary. Collateral security for by way of assignment of insurance policy or any such other assignable financial instruments are also required, as security to loan if deem necessary by the Bank. Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely. 
How is my loan reassessed if there is a change in status from Non-Resident Indian to Resident Indian?
The repayment capacity of the applicant(s) based on Resident status is reassessed and a revised repayment schedule worked out. The new rate of interest will be as per the currently applicable rate of Resident Indian loans (for that specific loan product). This revised rate of interest would be applicable on the outstanding balance being converted. A letter is given to the customer confirming the change of status.

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