A loan against property is a secured loan which gives multiple benefits to its borrowers like no end usage limitation, lower interest rates, etc. This is why applicants need to know about the process of availing of a mortgage loan and everything else related to it. This will help increase the chances of loan approval.
Read on to know mortgage loan process and how it works.
Guide to mortgage loan process
Getting a mortgage loan in India has become simple with many NBFCs offering attractive benefits on them. There are generally 3 stages that people need to complete to avail of a loan against property:
- Application
Applicants need to finalise a suitable lender by comparing rates of interest, and other factors. After that, the lending company asks for their information such as required documents for the loan against property application form.
Borrowers need to submit these to complete the loan application process and move on to the next stage.
- Evaluation of loan application
After submitting proper documents, lenders verify the applicant’s profile to determine whether or not they are eligible for the loan. They also determine the loan amount that the borrower is eligible for and the applicable interest rates.
- Borrower verification
This is the final stage of a mortgage loan process. This is where the lending companies verify the applicant’s credibility. They also check the authenticity of the documents and the collateral that borrower has submitted.
After the completion of the above-mentioned process, lenders disburse the loan.
Mortgage loan application process
The application process for a mortgage loan is also simple and hassle-free. Borrowers can follow these simple steps to get a loan from any lending company with ease.
Step 1: Visit your lender’s website.
Step 2: Input details about your employment and loan type.
Step 3: Enter your name, contact number, date of birth and other details in the specified fields.
Step 4: Click on ‘Submit’ to complete the application process.
Although the loan against property application process is free from complications, people must check and ensure they are eligible for the loan. This will eliminate complications related to loan approval.
Loan against property eligibility criteria
Lenders usually specify very simple criteria that borrowers must fulfil to avail of a loan against property. However, the requirements may slightly vary for self-employed and salaried individuals.
Self-employed applicants
- Residing Indian citizen
- Age between 25 and 70 years
- Minimum 5 years of business vintage
Salaried individuals
- Between 28 to 50 years of age
- Citizens residing in India
- Minimum 3 years of work experience in a public/ private company or MNC
Borrowers can also calculate their loan against property EMI beforehand so that the process of loan repayment is smooth. Although you can do this calculation manually, it may cause errors. This is also true for the calculation of loan against property EMI.
Instead, applicants can use a loan against property EMI calculator for this purpose. It is a free online tool that lenders provide on their online portals. It gives a projection about the monthly interest on a mortgage loan with these 3 factors:
- Loan amount
- Tenor of loan
- Rate of interest on a mortgage loan
This calculator gives quick results, is easy to use and available 24*7.
Many lending institutions in India extend pre-approved offers on mortgage loans and home loans to eligible candidates. These offers make the loan application and disbursal process coherent and streamlined. After confirming their eligibility, borrowers can check these pre-approved offers from lender’s website by entering their name and other details. A better understanding of mortgage loan process will help borrowers reap its benefits to the fullest. It might also help in closing the loan before its specified tenor.
