Borrowers can collateralise different mortgage types while applying for a loan against property. However, choosing the right one is essential to get an increased credit amount and lower interest rate. This is generally available on properties with advanced features and situated in a posh location.
A borrower must know the different types of mortgage loans available to finalise the most appropriate one. This helps them to plan their future well using the loan amount appropriately. Here are some benefits of this loan in future planning that individuals can enjoy on selecting the right mortgage.
Role of mortgage loan in future planning
The benefits of a mortgage loan in fulfilling an individual’s future plan are as follows:
Instant loan approval
Borrowers can get instant approval on their credit application, given that all the documents are accurate and they fulfil the eligibility criteria. This ensures that they can meet the urgent requirement of funds and take necessary steps towards fulfilling their future goals. These can include purposes like paying for an exclusive course or funding their dream start-up.
Adequate time to repay a loan
Borrowers can select a loan tenure of up to 18 years. This provides them sufficient time for credit repayment in easy instalments, during which they can use the money to fund immediate expenses, which can aid in their future planning. Also, they can get enough time to repay the credit without default.
Easy balance top-up facility
A sudden need for extra funds can crop up anytime while running a venture. In such situations, one can easily top-up their credit amount to furnishing additional expenses. They can use this money for business expansion, purchasing raw materials, repairing machines, and so on. This serves as one of the many reasons why individuals should use a loan against property to start their business.
Zero part-prepayment charges
Borrowers do not have to pay any additional charges for prepaying or foreclosing a loan. This helps them to save more on their EMIs as the credit amount decreases. One can invest this money in a side hustle for some extra income and savings to plan for future goals and emergencies.
Sumptuous loan amount
Individuals can opt for up to Rs.5 crore against this online mortgage loan, which can help them to fund their dream course in a top-rated university in the world. Moreover, this would eventually help them build a successful future career. However, individuals must know some things before applying for a loan property for education to make the most out of it.
Nonetheless, it is essential to check the eligibility criteria for this type of credit before proceeding with application.
Eligibility criteria of mortgage loan
Individuals need to meet the following eligibility criteria to apply for a mortgage loan:
- Applicants must be a citizen of India
- Their minimum age must be 28 years.
- They can be a maximum of 58 years of age at the time of loan maturity.
Once an individual ticks all the eligibility requirements, he or she can proceed to apply for a loan against property.
6 Steps need to follow to apply for a mortgage loan
Individuals can follow the steps below to apply for a mortgage loan:
Step 1: Move to the official website of a financial institution.
Step 2: Move to the ‘Loan Against Property’ tab.
Step 3: Click on ‘Apply Online’ button.
Step 4: Fill in the form by furnishing accurate property and personal details.
Step 5: Enter the essential income-related details to check the loan offer.
Step 6: Click on ‘Submit’ button to complete the application.
Once done, a representative from the financial institution will reach out to prove further assistance. In addition, individuals must keep some essential documents required for mortgage loan ready during the credit application process.
Imprtant Documents required for a mortgage loan
Individuals will need to furnish these documents while applying for a loan against property:
- KYC documents
- Salary slips for the last three months
- Property documents
- IT returns
Many financial institutions bestow their existing customers with pre-approved offers to speed up the loan approval and funds disbursal process. Borrowers can instantly check their pre-approved offer by inputting their name and contact details. They can avail of this offer on different products such as home loans, loans against property, and so on.