5 points to keep in mind while bagging a mortgage loan in India

05 January, 2018      Non Home Loans

A mortgage loan is considered one of the most secured loans which every financial agency or Bank always consider while providing a loan, as the person places his/her property as a security to raise the money for his/her financial requirement

Mortgage Loan in India

India is a growing country and as such with a bullish market growth the existing firms are expanding their reach, while new players are placing a strong foothold in the market. With bigger plans and bigger ambitions, the firms and companies also required bigger financial backing, as such the mortgage loans in India are playing a crucial role as the banks and other financial institutions now have more confidence on their customers for repenting their loan amount on time.

Following are the points to a keep in mind while bagging the Mortgage Loan:

1)    Eligibility:

While applying for the mortgage loan in India you need to crosscheck your eligibility by checking the following factors:

• Evaluating your existing liabilities and the number person’s dependent on you.
• Your total work experience or the tenure of your existing business.
• Evaluating the value of the property, you are willing to use as a mortgage.
• Minimum age of the applicant on the documents should be greater than 21yr.
• A good CIBIL increases the eligibility of the applicant for Pertaining the mortgage loan in India.

2)    Legal Document Assessment:

The Legal Documents needs to be checked on a frequent basis so that a proper track record of all papers can be maintained which are a mandate for grabbing a mortgage loan in India. following are the points to be taken care of:

•  Proper identity proof of the applicant like voter card, driving license, PAN card, passport, employee ID card etc.
• The latest salary slip or business existence proof and Certified financial statement.
•  Income tax return for last 3 years.
• Last 6 month’s bank statement of salary account or current business account.
• The highest education qualification document of the applicant.
• Proper property document in the name of the applicant willing to apply for the mortgage loan.

 3)     Types of Mortgage Loan Interest rates:

The interest rate plays a crucial role in securing a suitable mortgage loan as the rate increases with the increased loan amount. The mortgage loan interest rate also depends upon your occupation, the property value and the CIBIL which evaluates your repayment capability. Following are the three types of mortgage loan interest rates provided:

•    Fixed rate Mortgage Loan – Under this, the mortgage loan interest rate remains same throughout the loan tenure and monthly payment neither rises nor falls.

•    Flexible or Adjustable Rate Mortgage Loan – The interest rate under this stays low in the beginning of the loan but later it can either increase or decrease, depending upon the loan amount left to be paid back.

4)     Financial institution selection:

It is always smart to compare various financial institutions before selecting them as your primary money lender. Keep following points in mind before choosing your institution:

• Check the credibility of various institutions in the market.
• List down the rate of interest provided by various institutions.
• Ask for the types of mortgage loan interest rates they provide i.e. either fixed rate or flexible rate.
• Check the after service or customer service rating of the institutions.

5)     Additional fees and Charges:

it’s always advised to keep a check of all the charges that may go unnoticed while applying for may Mortgage Loan in India. Following are the charges to check:

•    Processing fees – it’s a non-refundable fee collected by the institution for processing and handling your files, irrespective of the fact that your loan gets sanctioned or not.

•    Legal fee – The amount charged by the lawyer on the institution for verifying the legal status of the property is also charged as a legal fee by the institution on the borrower.

•    Penalty Charges – Some institutions also charge for prepayment of their mortgage loan depending upon the type of mortgage loan interest rate picked by the borrower.

However, all these fees and charges are not collected by all the financial institutions.

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