Sometimes in life, some such big decisions have to be taken for which money is needed. In such a situation, should a person do it for any business, for buying a house, or for building a house, for studies, or For marriage, or anything else, a loan is needed at some point in time? Similarly, you can take a mortgage loan from any bank or financial institution.
Do you know what a mortgage loan is? What do I have to do to get this loan? What type of loan is this? What are the documents required for a mortgage loan? What is the rate of interest charged on a Mortgage Loan? Let us know in detail about all these, what this mortgage loan is and why it is taken.
Meaning of Mortgage Loan?
Friends, do you know what a loan is against property or a loan against property? Today we are telling you information about it. It is a secured loan, and it is called a mortgage loan. In this, by mortgaging any of your assets in any bank or financial institution or any company giving the property, you take money in return for it. That’s why it is called Mortgage Loan. Under this loan, all the papers of your property and rights on them are given to the bank, with the company, or whatever financial company is there. You get it. That is, all the properties are taken back in your name.
What are the features of a Mortgage Loan?
Whenever a loan is taken against any property, or you apply for a loan against property in any bank or company for a loan. Some special features are found in it which is very different from other types of banks, let us know-
- First of all, for your information, let us tell you that a mortgage loan is considered a secured loan because it is given based on your property.
- The purpose of this loan can be only for personal and business money transactions.
- The amount you get against your property is between 60 to 80% of the market value.
- For loan against property, the land with you should be in your name.
- Your land is also thoroughly investigated by the bank.
- The rate of interest in a mortgage loan is very low.
- When your property is done in the bank as collateral, if you do not pay the loan for any reason, then the bank becomes completely sure because your land is mortgaged with the bank.
- Under the mortgage loan, the repayment time is up to 15 years. During which you can easily fill the loan.
Some Specific Information for Mortgage Loan
To take a mortgage loan, whenever a person takes money against his property, then for this, you have to apply to any bank or financial institution. First of all, it is very important to take care of some special things before applying anywhere. So that you do not suffer any loss in the future, let us know –
- If your property is in the name of more than one person, then it is also necessary to accept the consent of all of them to take a mortgage loan from the bank.
- Whenever you apply for a loan in the bank, you should first evaluate your property in the market, its value, and its condition. Only then do you apply to the bank?
- The property is mortgaged for the loan, and he cannot send your property to anyone without repaying the loan.
- If you do not hide the loan installment on time for some reason, then the bank seizes your property, sells it, and recovers your loan amount. This right is with the bank.
Mortgage loan types
There are many types of mortgage loans.
1. Equitable Mortgage – Under this loan, the housing finance companies there check all the documents of your property properly. After that, if you apply for a loan, it offers you a loan after signing a loan agreement. And whatever the housing finance company is, it does not ask for many documents, but many companies ask for your property documents. Only after that do they offer the loan.
2. Registered Mortgage – In a registered mortgage, your property is attached to the authority whenever you go to any bank or financial institution for a loan. The charge on mortgage registration on your property is also recorded in the government data. That is why most applicants for taking this loan also pay the registration charge during the loan.
3. usufructuary mortgage – This is such a loan that in this, the bank has the full title on your property. This loan is given very rarely in our country. If your property is on rent and it is mortgaged with the bank, then the right to collect the rent is with the bank and not with the house owner. When your loan in the form of rent is also completed, your property is returned in the name of the house owner.
Meaning of mortgage
In this, your property is held hostage by the bank. That’s why it is called Morges. It means to take money by mortgaging your land papers with the bank.
Mortgage loan amount
Friends, let us tell you one thing in advance that Modi loan is a secured loan for all of you. That is, it is a loan against property. In this, by mortgaging your vacant land or the land in which you live or any property papers inside the bank, you get money from there for the value of that property. The same is the mortgage loan, and the loan amount available under a mortgage loan is 85% to 90% of the total value of the property. This person can use it for any work at the time of his need regarding Islam.
Mortgage loan interest
What type of loan are you taking? Whenever we apply for a loan under any bank or NBFC institution, there are two types of loans. According to them, the rate of interest is fixed. One is non-secure. The other unsecured loan now depends on you. The mortgage loan is secured, so the rate of interest on it is low because, in this, your property is deposited with the bank as security.
There is no guarantee in an unsecured loan. Therefore, the interest rate is high, and the interest under which the loan has to be paid from 10% to 14% per annum. Apart from this, GST charges and processing charges of 2% also have to be paid by the person along with the loan amount. The rate of interest for salaried employees has been fixed from 10:00 to 11%. Late payment charges are levied if you have not paid the EMI of any bank due to any reason.
Mortgage loan repayment time
The loan repayment time given by the bank in the form of a loan is also fixed in advance because this loan amount is larger. Hence the time to fill it is also more. The tenure under Mortgage Loan ranges from 2 years to 20 years. Under this, the person has to pay the loan. If you want, you can also pay the loan in one go.
If you want the budget not to spoil and the money to be easily repaid, you can pay this loan amount in the form of monthly installments within 20 years. Whenever we borrow money from someone or take money in the form of a bank loan, there is also time to fill that money. If we do not pay the loan on time, the bank can also take action. First, those people inform you by giving notice. After that, the auction of the property kept by you can also take place.
Types of Mortgage Loans in India
Mortgage loans are given in our country in different ways, whose information is as follows-
- Loan Against Property
- Loan to buy a construction home
- Property Loan For Home Renovation
- Loan Against Property For Debt Consolidation
- Loan Against Shop
- Loan Against Machine
- Property Loan For Marriage
Disadvantages of taking mortgage loan
There can also be some disadvantages of taking a mortgage loan, let us know –
1. Mortgage loan is also given based on the person’s property and salary, so try to take as much money as you need or as much as you need. Otherwise, the recovery process after you lose your job for any reason may also have to face.
2. Whenever you take any mortgage loan, make sure to get it insured. This will help you a lot.
3. Whenever you apply for a mortgage loan in the bank, take the loan jointly. This will make it easier for you to repay the loan and pay the loan as EMI only. You will also get less interest on the loan, and the payment will also be made easily.
4. If you cannot repay the mortgage loan in full for some reason, it can have a huge impact on your civil score. Apart from this, until you do not fill that bank’s loan, you will not be able to make your relationship good with any other bank.
Eligibility for taking mortgage loan
It is very important to have the qualifications to get a mortgage loan
- First of all, the person must be a citizen of India.
- The age of the person should be more than 25 years and should be less than 75 years.
- Have your own business or whether the person is a job professional.
- The monthly income should be 25000 or more.
Insurance for Mortgage Loan
If you want to take a mortgage loan against this property, you should get the Compressive Insurance Insurance of the value of that property. Because this insurance will help you meet any risk of your property, so get the insurance necessary.
Documents required for a mortgage loan
Friends, for the information of all of you, let us tell you that a mortgage loan is a secured loan, but it also requires some important documents. More documents are not needed in this, but some papers should be necessary, let’s know…
- PAN card
- Aadhar Card
- Bank statement
- Address Proof
- Property documents
Application for a mortgage loan
You can apply both online and offline to take a mortgage loan. Today, along with the increasing technology in our country, everything has started working online. The second reason is also that today the whole world is battling with the Corona epidemic. In such a situation, everyone can fulfill their need by taking an online loan. You can apply online for any loan.
First of all, let us tell you that if you apply offline to take a mortgage loan, then you have to go to the bank with all the documents. There you have to apply for a mortgage loan. By submitting all the documents, you will also have to mortgage your property papers with the bank. That is, you will have to do your property papers in the name of the bank. After that, it will take 3 to 4 days for the verification of all the documents.
Then the property documents you give will be scrutinized properly, and only after seeing their market value will you get the mortgage loan against the property. Apart from this, when you apply for a mortgage loan online in any bank or NBC institution, there are very few NBC institutions through which mortgage loan is available. Still, you can search through the internet, and you can find it at your convenience. According to this, you can apply online for a loan on any trusted bank by visiting their official website.
Today we have told you what a mortgage loan through this article is. Complete information about this is given in it. I hope you liked all the information given by us. If you want more information related to this or any other type of suggestion, you can ask by commenting in our comment section.
What is a mortgage loan taken for?
For self and business
What type of loan is a mortgage loan?
What are the types of Mortgage Loans?