Mortage Loan
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Loan Experts is committed to provide the world class financial services among itscustomers. We are serving our renowned associate Bankers and valuable customers forlast 15 years.
Sachin Vashishth
(Managing Director)
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A mortgage loan from government banks in India is a type of secured loan where the borrower pledges a property as collateral to avail a loan. These loans are generally used for various purposes like purchasing a new property, consolidating debt, financing large expenses, or raising funds for business purposes. Here’s a detailed overview:
Types of Mortgage Loans
Loan Against Property (LAP):
- 1. Purpose: Can be used for business expansion, debt consolidation, education, medical emergencies, or any other personal needs.
- 2. Property Types: Residential, commercial, or industrial properties can be mortgaged.
- 3. Loan Amount: Typically 50% to 70% of the property’s current market value.
- 4. Interest Rates: 9% to 12% per annum.
- 5. Tenure: Up to 15 years, with some banks offering up to 20 years for high-value loans.
- 6. Collateral: The property being mortgaged serves as the primary collateral.
- 1. Purpose: For purchasing a new home, constructing a house, or purchasing an under-construction property.
- 2. Property Types: Residential properties only (apartments, individual houses, plots with construction plans).
- 3. Loan Amount: Up to 80-90% of the property’s value.
- 4. Interest Rates: 8% to 9.5% per annum.
- 5. Tenure: Up to 30 years, depending on the borrower’s profile.
- 6. Collateral: The property being purchased usually serves as collateral.
- 1. Purpose: For senior citizens (aged 60 and above) to receive regular payments by mortgaging their self-occupied residential property.
- 2. Property Types: Residential property owned and occupied by the borrower.
- 3. Loan Amount: Based on the property’s current market value and the age of the borrower, typically up to 60% of the property value.
- 4. Interest Rates: 10% to 12% per annum.
- 5. Tenure: Usually 15 to 20 years or until the borrower’s lifetime.
- 6. Payout: Monthly, quarterly, or lump-sum payments.
- 1. Purpose: To purchase or construct commercial properties such as offices, shops, or warehouses.
- 2. Property Types: Commercial real estate (CRE) such as office spaces, retail spaces, or industrial units.
- 3. Loan Amount: Up to 60-70% of the property’s market value.
- 4. Interest Rates: 9% to 12% per annum.
- 5. Tenure: Up to 15 years.
- 6. Collateral: The commercial property being financed serves as collateral.
Eligibility Criteria in Detail
Age:
- 1. For Salaried Individuals: Typically, the minimum age is 21 years, and the maximum age at loan maturity is 60 years.
- 2. For Self-Employed Individuals: Minimum age is generally 21 years, and the maximum age at loan maturity is 65 years.
- 1. Salaried Individuals: A stable monthly income with a minimum threshold as defined by the bank.
- 2. Self-Employed Individuals: Consistent and sufficient income from business operations, verified through IT returns and bank statements.
- 1. A credit score of 700 and above is usually required for favorable terms. A lower score may still be accepted but could result in higher interest rates.
- 1. Title: The property must have a clear and marketable title with no existing encumbrances.
- 2. Age of Property: Some banks may have restrictions on the age of the property being mortgaged, especially for home loans.
- 3. Location: The property should be located within the approved geographical areas of the bank, and certain rural or underdeveloped areas might not be eligible.
- 1. Salaried Individuals: Continuous employment history with current employment of at least 2 years.
- 2. Self-Employed: A stable business operation history of at least 3 years.
Detailed Documentation Requirements
KYC Documents:
- 1. Identity Proof: PAN card, Aadhaar card, Passport, Voter ID.
- 2. Address Proof: Utility bills, rental agreement, Aadhaar, Passport.
- 1. Salaried Individuals: Latest 3-6 months salary slips, Form 16, IT returns.
- 2. Self-Employed Individuals: IT returns for the last 2-3 years, profit and loss statement, balance sheet, business registration certificate.
- 1. Title Deed: Legal proof of ownership.
- 2. Sale Agreement: In case of a new purchase.
- 3. Encumbrance Certificate: Proof that the property is free from legal liabilities.
- 4. Approved Building Plan: Necessary for home loans and construction loans.
Benefits and Advantages of Mortgage Loans
Lower Interest Rates:
- 1. Mortgage loans generally offer lower interest rates than unsecured loans because they are backed by collateral.
- 1. Based on the value of the property, you can secure a higher loan amount compared to unsecured loans.
- 1. Flexibility in repayment terms, with tenures extending up to 30 years for home loans.
- 1. Home Loans: Principal repayment qualifies for deductions under Section 80C of the Income Tax Act, and interest payment qualifies under Section 24(b).
- 2. Loan Against Property: Interest payments may be tax-deductible if the loan is used for business purposes.
- 1. Funds can be used for any legitimate financial need, such as business expansion, medical expenses, education, or debt consolidation.
- 1. For floating rate loans, prepayment penalties are usually waived, allowing borrowers to pay off their loans early without extra charges.
About Us
Loan Experts is committed to provide the world class financial services among itscustomers. We are serving our renowned associate Bankers and valuable customers forlast 15 years.
Sachin Vashishth
(Managing Director)
Contact Info
- +91-9810454531
- Projectfinancer@yahoo.co.in