Most lenders provide an easy application process for availing of a mortgage loan in India. To opt for a loan against property, borrowers are bound to keep a property as collateral with the lender till the payment of the loan. However, besides the lenient application process, leading financial institutions offer simple eligibility criteria and documentation for fast loan application processing.
Steps to apply for a mortgage loan quickly
The steps to apply for a property loans are –
Step 1: Visit the official website of your preferred loan against property lender.
Step 2: Navigate to the mortgage loan section and click on the online application form.
Step 3: Fill up the application form by providing personal information, such as name, mobile number, date of birth, pin code, PAN, average monthly salary, property details and income details.
Step 4: Then click on the Submit button to proceed.
Apart from these steps, knowing the eligibility and document requirements beforehand helps to avail of a mortgage loan quickly.
Eligibilities to avail a mortgage loan
The eligibility to avail of a mortgage loan is –
- Applicants must be between the age of 25 to 70 years.
- Self-employed applicants must have a steady source of income
- Salaried applicants must be an employee of any multinational, government or private organization.
- The property must be located at any place of operation of the lending institution.
Documents required for availing a mortgage loan
Most leading lending institutions have minimum document requirements for fast processing. The documents required for availing of a property loan are –
- KYC documents
- Voter ID
- Aadhaar card
- PAN card
- Driving license
- Passport
- Financial documents
- Latest salary slips
- Bank account statement for last 3 to 6 years.
- IT returns
- Title documents
- Documents of property that are required to mortgage
- Additional lender specific documents
Besides, knowing about the interest rate and factors influencing it assists in financial understanding and helps to settle for a lender faster.
Factors affecting mortgage loan interest rate
Prospective borrowers applying for a property loan must note that multiple factors are responsible for an affordable interest rate. These include–
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CIBIL score
This is one of the most important factors influencing a loan against property interest rate. A high CIBIL score of 750 and above increases the creditworthiness and trustworthiness of a borrower, and as a result, lenders often disburse the loan amount with a minimum interest rate. Apart from it, a high CIBIL score also proves a disciplinary payment history of a borrower, thus enhancing the eligibility of a prospective borrower. Besides, a healthy credit history report is also important; hence most experts advise keeping old credit reports.
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Tenor
The repayment tenor of a loan against property also decides the affordability of the mortgage loan rate. The tenor is inversely related to the interest rate; as a result of this, a longer tenor is likely to fetch a lower interest rate, whereas a shorter one will have a higher interest rate. But, increasing the tenor will increase the total interest paid; hence, it is essential to choose the tenor wisely before applying for a mortgage loan.
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Property
The property to be mortgaged helps decide the loan amount. For example, if the property is located in a place with all amenities, it will fetch a higher price hence the lender will disburse a higher amount in comparison with a property at a remote location. Apart from it, the concerned property’s age and type also influence the property loan interest rate.
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Age
As younger applicants are more likely to repay the loan, financial institution often offers lower property loan interest rates. So, it is beneficial to opt for a property loan at a younger age to get a lower interest rate.
In India, selected financers provide pre-approved offers that simplify and expedite loan processing. Such offers are available on a range of financial products like loans against property, home loans, etc. You can enter your name and contact number to check your pre-approved loan offer.
Hence, to quickly avail of a mortgage loan, individuals must meet the eligibility and keep documents ready for faster application processing. Apart from it, one must check the steps for a hassle-free and quick loan application.
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