Are you looking to apply for a mortgage loan in India or the loan against property (LAP loan)? If yes, you are not alone! A large number of people who are looking for a considerable amount go for a mortgage loan in India.
In life a person has so much ambition to fulfill, but one thing constantly stops you from going further in your life in the support of money. To avail funding that a traditional personal loan cannot offer, a property loan is the ideal alternative. It is a secured loan that can be used without any restriction.
The mortgage loan is a secured facility. In this, an immovable asset like a property is kept as collateral. It is why the mortgage loan interest rates are lower and helps you save on repayments.
If you meet the eligibility criteria as prescribed by a lender – either a bank, Housing Finance Company or NBFC, you can get a significant amount. You can also use the mortgage loan calculator to know exactly what the lender could sanction.
This tool is available on a lender’s website for free.
If you want to know the process of availing of the mortgage loan in India, here is a post to go through.
What steps are involved when you acquire a mortgage loan in India?
- The pre-approval stage
This is the first step before you apply for a loan against property. Now, you need to have a robust CIBIL score to secure the loan faster and at a lower rate. The lender pulls your credit score before considering you for a loan. The lender will know how much it can sanction you. You should maintain a credit score of 750 or more. You can do that by paying your loan EMIs and other bills on time.
- Getting an estimate of your mortgaged property
Since the mortgage loan in India is given on the worth of the mortgaged asset, you need to get an estimation done. An older construction would be worth much less as compared to a newer construction. Also, if the property is not centrally located, it may not let you get a large loan amount. Hence, getting an estimate of your asset is a must.
- The loan application
The loan application will involve meeting your lender’s eligibility criteria. It also involves submitting the required documents. As a borrower, you can check out all such conditions on your lender’s site earlier and prepare accordingly. This can help you to avoid the possibility of a loan rejection.
- The mortgage loan processing
Now, the processing of your mortgage loan in India will take place. If your creditworthiness is higher and you meet all terms, lenders may sanction your request. The inspection of your property will also be done by a lender’s representative to estimate its final value.
- The loan underwriting
After the loan processing, your lender will review everything. And then, it will decide whether to approve or reject your application. Your documents may also be scrutinized to ensure that the loan is sanctioned to a genuine borrower.
- The loan agreement signing and funds disbursal
If your mortgage loan application is approved, you need to sign the loan agreement. Once you do that, your approved loan amount will be credited into your bank account.
The mortgage loan process is now revealed to you. It is a standard procedure and may differ from creditors to creditors.
What is the significance of the mortgage loan in India?
A mortgage loan is among one of the best options to avail of a significant amount.
Since collateral is involved, the mortgage loan interest rates are lower. It helps a borrower pay reduced EMIs and save.
Another benefit of applying for a Loan Against Property (LAP) is that you can use the loan amount for any purpose as per your needs.
Lenders put no restrictions on how you use the money if you use it for legal purposes. It is also possible to avoid straining your wallets while repaying the mortgage loan.
If you have needs that require big-ticket finance, then you can rely on the loan against the industrial property facility to cover all. The property loan can meet your needs, such as to manage the funds for an upcoming marriage in the family, to consolidate all high-interest accruing debts and pay a single EMI each month, to fund the expenses of your children’s overseas education, to manage an urgent medical emergency and to expand your business. Top lenders in India provide you with a flexible repayment tenor of up to 20 years.