A mortgage property loan is a secured loan that allows you to access funds to meet your financial requirements without putting any burden on your savings or investments. To get a loan, you need to pledge your property as collateral. It means that if you default on your repayments, your lender has the legal rights to sell your property to recover the loan amount.
The loan amount that you can get depends on the value of your property. You may get up to 70% of your property’s value on a loan. The interest rate on a mortgage property loan is lower than other secured loans, and the loan tenure can go up to 15 to 20 years. Before applying for a mortgage loan, it is imperative to assess your loan affordability through a mortgage loan calculator available online.
To apply for a mortgage loan, you will have to check with your lender about their eligibility criteria and ensure to meet them. Here are the requirements that you need to meet:
- You must be at least 21 years old at the time of loan application and 65 years during the loan maturity.
- You must be either a salaried employee of a company or a self-employed person.
- You must not have any current financial obligations.
- You must show a stable income based on your lender’s policy.
- You must be working in your current company for at least one year and have work experience of at least three years.
Besides meeting the eligibility criteria of your lender, prepare and submit the following document proofs:
- Identification proof
- Address proof
- Salary slips
- ITR or form 16
- Bank statement
Check out the eligibility requirements of your lender to apply for a mortgage loan right away.