Mortgage loan options like loans against property allow individuals to pledge tangible assets as security and access lump sum loan amounts at an affordable interest rate.
In order to make the most of the credit option and receive approval for loan application at one go, individuals must know the mortgage loan process and be well acquainted with its intricacies to avoid rejection of loan application.
A step-by-step guide to mortgage loan process
Individuals must follow the mentioned steps to avail of a loan against property and fund various financial requirements. Firstly, borrowers must compare several lenders and their offerings to settle for one extending competitive interest rate and better loan deals. Then, after selecting the right lender, individuals must visit the official website and follow the mentioned steps.
Step 1: Check eligibility criteria and submit documents
Before applying for the credit option, individuals must adhere to the eligibility norms set by the lender. They must cater to the set age bracket and have stable employment and income status. Individuals also must keep a decent CIBIL score for property loan to fetch affordable loan terms.
Here are the eligibility norms individuals must meet to receive approval for the loan amount:
- Applicants must be residing Indians.
- Salaried applicants must fall in age bracket of 28 to 58 years.
- Salaried individuals must be employed in a private or public firm with a minimum work experience of 3 years.
- Self-employed individuals must belong to age group of 25 to 70 years.
- Self-employed applicants should have a business enterprise with a vintage of minimum five years.
Besides meeting eligibility norms, borrowers need to keep the necessary documents handy.
Step 2: Fill out the online application form
The mortgage loan application process starts with individuals filling out the application forms. Individuals will have to provide the necessary personal and property details as the information will be verified based on which the loan application will be approved. Individuals will have to submit required documents, including KYC papers, income proof, proof of residence, property details, etc.
Step 3: Verification of documents
After submitting the requested loan against property documents, applicants will have to await document verification. Lenders will scrutinise borrowers’ employment status, credit reports, personal and property details.
Lenders can even ask for a face-to-face verification. On confirming the authenticity of submitted documents, lenders will approve loan applications and offer sanction letters.
Step 4: Evaluation of property and legal check
After accepting the sanction letter, individuals will have to undergo a second phase of verification. In this stage, lenders will verify property details and check whether it is free from legal disputes. In this phase, the property value is determined. Finally, lenders evaluate the credit risk by scrutinising every aspect of the mortgaged property.
Step 5: Get the loan amount in account
After clearing all the verification processes, borrowers will receive the final disbursals in their accounts. They can use the loan amount to fund various financial requirements like funding a child’s education, medical exigencies, consolidating debts, etc.
Besides knowing the application process, individuals must also be mindful of choosing the optimum property loan tenor. Loan tenor influences the EMI amount and interest outgo.
A longer loan tenor reduces property loan EMI burden, helping one make on-time EMI pay-outs. On the other hand, a shorter loan tenor will reduce the overall interest outgo and help one go debt-free faster.
On completing the mortgage loan process, individuals will be able to reap several advantages, which include pre-approved offers. These offers are extended by leading financial institutions on various financial products like loans against property, home loans, etc. These offers accelerate loan application process and reduce the turnaround time. Intending individuals can check the pre-approved offers by submitting their names and contact details.
To sum up, a loan against property is an effective mortgage loan choice that allows individuals to pledge their assets as collateral and access high-value loan amounts. However, to make the borrowing rewarding, it is important for individuals to know mortgage loan process before going ahead with the loan application.