Mortgage loans prove to be a reliable financial option for individuals in need of substantial funds. Borrowers acquire funds from this credit instrument at a nominal interest rate for an extended tenor, making repayment convenient.
Moreover, unlike some other credit instruments, a LAP offers no end-use restrictions to borrowers. This implies that borrowers can utilize the funds for meeting any financial obligation.
However, before applying, it is crucial that potential borrowers are aware of the mortgage loan process.
How to apply for a mortgage loan?
Given below are six vital steps of a mortgage loan process:
Know the eligibility criteria
Prior to applying, prospective applicants must take note of the eligibility criteria for a loan against property. The eligibility for this credit instrument is different for salaried and self-employed individuals. These are given below:
For salaried individuals:
- Age must be between 28 and 58 years
- Individual must be a salaried employee in an MNC or a private or public sector organisation
- Applicant must be an Indian resident who owns and lives and in a property located in any of these cities – Hyderabad, Bangalore, Pune, Ahmedabad, Delhi &NCR, Mumbai & MMR, Chennai
For self-employed individuals:
- Age must be between 25 and 70 years
- Applicant must be a self-employed individual earning a steady income from business
- Individual must be an Indian resident who owns and lives and in a property located in any of these cities – Cochin, Ahmedabad Bangalore, Madurai, Surat, Mumbai, Jaipur, Delhi & NCR, Lucknow, Hyderabad, Indore, Nagpur, Vijayawada, Chennai, Pune
Fill up an application form
This is the first step for applying for a loan against property. Reputed financial institutions extend an online procedure to apply for this credit instrument. This online route of loan application is easier and more convenient than the offline one. Individuals searching for “how to apply for a loan against property” must note that they generally need to fill up the following information:
- Employment details
- Personal details
- Details related to loan requirements
- Income information
Await loan processing
Once the application form is filled up and submitted, the lending institution assesses the eligibility for a loan against property. Depending on eligibility, financial institutions extend loan terms to applicants or ask them to add a co-applicant to increase their eligibility if required.
Check all loan servicing terms
Individuals must check out the terms of loan against property carefully. They must opt for a renowned financial institution extending the most affordable loan against property interest rates and processing fees.
Choosing a reputed lender will also allow borrowers to benefit from several pre-approved offers extended on secured and unsecured financial products. These offers help simplify and accelerate the lending process. Applicants can check their pre-approved offers by providing a few details, such as their names and contact numbers.
Individuals can use a loan against property EMI calculator to get an idea of the most suitable interest rate and tenor per their suitability.
Arrange all necessary documents
Individuals need to submit the necessary documents to avail of the loan successfully. They need to arrange the below-mentioned documents for the mortgage loan process:
- Income documents
- KYC documents
- Property documents
Read Also: A Personal Loan Can Help Government Employees to Manage a Financial Crisis
Await loan verification
After applicants submit all necessary documents, the lending institutions initiate a legal and technical verification procedure. Here, the financial institution evaluates the property and verifies the authenticity of the property title. Depending on inspection, lenders confirm an applicant’s eligibility and approve the loan.
Finally, the lending institution issues a sanction letter, thereby authorizing the disbursal of funds depending on the approved terms.
Thus, individuals must keep in mind the above-mentioned details related to the mortgage loan process. Additionally, they must note that it is necessary to submit the original property documents to the concerned lender, and these will be held till the completion of repayment.
