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Showing posts with label mortgage. Show all posts
Showing posts with label mortgage. Show all posts

Friday, May 21, 2021

What are the Factors to Consider Before Availing a Loan Against Property?

11:58 PM 0

A loan on property is a secured credit variant that has gained popularity with a changing economy. This loan form offers substantial funds against collateral which can be either residential or commercial.

To secure a mortgage loan, borrowers have to submit minimal documentation and comply with simple eligibility requirements. 


Individuals planning to apply for this credit form must understand what a mortgage loan is first.

What is a mortgage loan?

A mortgage loan is a secured credit option that offers substantial funds against collateral. It is usually sanctioned against an immovable asset like a commercial or residential property. The lending institution retains ownership of the collateral until the borrowers repay the outstanding balance.

After understanding the definition of a loan against property, a potential borrower must check the factors linked to streamline the application.

Factors affecting LAP loan

  • Mortgage loan interest rates

The interest levied on this credit form is compatible and easy in terms of repayment. However, the loan against property interest rates depends on a number of points like a borrower’s income, loan tenor, CIBIL score, etc. Hence, individuals must opt for a lending institution offering an affordable repayment structure.

  • Tenor

The tenor offered against LAP is quite flexible. Usually, salaried individuals can repay the amount within two to twenty years. For self-employed individuals, the tenor can extend up to eighteen years. In this regard, one can utilise the loan against property calculator to facilitate an informed decision on borrowing.

  • Loan amount

Individuals can avail high amounts against the LAP loan and utilise it to meet any number of financial requirements.

Following these points would aid a loan on property applicants to enjoy an expedient borrowing decision. 

Additional Read : Go and Check more about LAP Loan or Contact Bajaj Customer Care Number
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Location: India

Thursday, August 6, 2020

Avail a Mortgage Loan in 3 Simple Steps

1:44 PM 0

 A mortgage loan is a secured funding option, whereby individuals can avail funds from lending institutions by providing an asset as a mortgage. Usually, assets like residential or commercial properties are mortgaged to avail the credit. Once individuals have assessed the features of this credit and arrived at the best option, they can proceed to avail the advance in 3 simple steps.


Step 1: Check eligibility criteria

Individuals must check and fulfill the eligibility criteria before applying for the loan to prevent their application from getting rejected. Generally, self-employed resident Indians between 25 years and 70 years of age with a regular source of income are considered eligible for this credit. For salaried applicants, an age range of 33 and 58 years alongside employment with a public/private sector company or an MNC is mandatory.

Also, a high CIBIL score plays a crucial role in receiving loan approval and securing attractive mortgage loan interest rates. 

Step 2: Check documents required

Next, individuals must check the required set of documents and keep them handy when applying. Typically, KYC documents, proof of address, proof of income and documents related to the property to be mortgaged are required to initiate the verification process.


Step 3: Apply for the loan

Most financial institutions allow individuals to apply for mortgage advances like a loan against property online. However, becoming familiar with the steps is a must to streamline the process. 

Individuals can fill the application form by visiting the official website of the lender. They must review the details before submitting it online for hassle-free processing.

Applicants may also have to fulfill other requirements to avail a mortgage loan depending on the lender they choose. 

Do Read : Factors that Affect Mortgage Loan Interest Rates
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Wednesday, July 29, 2020

Points to Consider Before Applying for a Mortgage Loan

11:54 AM 0
Mortgage loans require borrowers to provide an asset as collateral to avail this credit. The lending institution will retain ownership of that collateral until the loan is entirely repaid. After that, they will transfer ownership back to its actual owner.

Additionally, its wide range of customer-friendly benefits makes it a popular choice of credit among borrowers. However, before availing this loan for mortgage, individuals should consider the following points.



Points to consider while availing a mortgage loan 

Interest rate: There are three sub types of these secured loans, i.e., home loans, mortgage, and commercial property loans, which can be availed for different purposes. Therefore, an applicable loan against property interest rate will vary from a home loan interest rate. Thus, borrowers should check the interest rate of a particular loan, which they are planning to avail.

Eligibility criteria: Since there are different sub types, the eligibility criteria also differ for each credit option. Therefore, carefully check the eligibility criteria of your selected loan before applying.

Required documents: In terms of documentation, there is not much difference between the three sub-types. Yet, prospective borrowers should check the list of documents required for bajaj mortgage loan before applying.

Additional fees: Every type of loan has several additional charges associated with it, and these secured loans are also no different. Thus, individuals should take note of these charges as it will help them calculate their overall cost.

Since there are three sub types of these advances, borrowers must be clear about their requirement. If they need a loan against property, then they should gather information regarding it and then plan accordingly. It will help them in their loan application and repayment.

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Monday, July 20, 2020

Learn the Benefits of Mortgage Loans

12:39 PM 0
Mortgage loans are a type of secured advance, whereby individuals can provide a residential or commercial property as collateral to avail funding. Usually, it is a high-value as well as a long-term credit.

Must Read : All to know about mortgage 



Lenders keep the asset taken collateral as security until the entire debt is repaid. Once it is done, they transfer the ownership back to the borrower. Usually, these advances are available in three sub-types

  • Home loans 
  • Commercial property loans 
  • Loans against property 

Benefits of mortgage loans 

  • As mentioned above, these loans are high-value loans. Based on the repayment capacity of a borrower, lenders decide the loan amount. Additionally, the upper limit of these loans may vary from one lender to another. 

  • Furthermore, these secured loans have an extended repayment tenor, which can go up to 20 years or more. It thus gives borrowers an opportunity to repay their debt affordably. 

  • A significant advantage of these loans is the income tax benefits they offer. As per the various sections of the Income Tax Act, 1961, individuals can avail exemption benefits on repayment of these secured advances. 

  • Additionally, the eligibility criteria required to qualify for this loan is also straightforward. Applicants with the required age and stable monthly income along with a reliable credit history can easily avail this loan. 

  • Last but not least, their variants like loan against property are disbursed quickly. Typically within 3-4 working days, individuals can get their money upon fulfilling the required eligibility criteria. 


These secured loans are a suitable way to organise funding for the purchase or development of a property. However, individuals must learn all the terms and conditions associated with this loan before availing it.
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Tuesday, July 2, 2019

Essential Aspects To Know About Loan Against Property

6:36 PM 0

In times of immediate cash requirement, many go for savings which is not a proper option. That way you are actually losing all your savings and exposing yourself to financial risks in the future. So the best solution is to get a secured loan from either a bank or an NBFC.
A secured loan against property known as the mortgage loan is not just the logical solution but an easy option for you to get money in very less time. So let’s talk about the few basic things about a loan against property.

Loan Against Property Eligibility Criteria
One has to know that the loan against property eligibility criteria depends according to the lender you choose. If you go for the public the bank you will have criteria set by the bank rule that you need to meet. Again, for NBFC you need to learn about the eligibility criteria and apply for the loan accordingly.

But the basic things remain the same such as:
  • Age criteria should be between 33 and 58 years
  • You have to be a citizen of India
  • You need to have a sound credit score
  • You must be either salaried or self-employed professional
  • You should have our residential property in the city where you apply for the loan.
Property Loan FeatureLoan against property is always a great way to take loan help from any the financial organization as that way you will enjoy a competitive interest rate and you will get quick approval. You can also negotiate the tenor as per your suitability and can pay back the loan even in 20 years. All you need to check is the loan against property eligibility criteria before you apply.
Learn well about the terms and conditions of the lender as you apply. 
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Thursday, January 17, 2019

How to Get a Mortgage Loan Against Mutual Funds and Shares

12:57 PM 0
If you ever planned on taking a loan or already have one on your name, you must be aware of the term mortgage. If you have no clue about it, mortgage refers to a legal agreement between a lender and a borrower. The lender (can be a bank, NBFC or a private financer) temporarily takes the title of the debtor's property with the condition that the conveyance of title becomes void upon the payment of the debt.

Now, a mortgage loan can be of different types. To name a few, Indian banking ecosystem has the following mortgage loan options:-


  1. Loan against property, commonly misunderstood as mortgage loan whereas it’s just a type. 
  2. Home loan - the property being purchased is taken as collateral for the loan. 
  3. Loan against securities - the recent addition to an already wide category, allows borrowers to take a loan against mutual funds, share market bonds or any other security. 

Assuming we all are well aware of the first two options; we’ll talk a little about the third option. Accordingly, loan against mutual funds/ shares/ other securities allows people to mortgage their securities and borrow a loan against it.

Loan Against Mutual Funds
Loan Against Mutual Funds

Key features of loan against securities:-


  1. Loan amount varies as per the maturity value of securities subject to the maximum specified by the lender. 
  2. Interest rates are lower given the presence of security.  
  3. Your investment maturity value remains unhampered.    
  4. Lastly, you get a good amount of time for repayment along with end-usage flexibility. 

Thus, if you’re ever stuck amidst a cash crunch and don’t have plans to liquidate your savings, loan against mutual funds is your best sidekick. 

To know more about the loan against shares and funds, click here: How to Use Mutual Funds and Shares as Collateral for a Loan
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