With ever-increasing NPAs and ever-decreasing loan interest rates, financial institutions, especially those in the lending business, are exercising caution when it comes to new loan approval and disbursal. While the stringency of documentation has enhanced across all category of loans, there is one loan that has been relatively unaffected by the massive changes in the sector.
A mortgage loan or loan against property is the best loan for you if you are unsalaried, i.e. without a uniform monthly income, of which a salary slip is a proof. While almost all other loans offer exclusive interest rates for salaried borrowers, only mortgage loan offers the same or, sometimes less interest rate for an unsalaried person. However, to avail a mortgage loan, you have to provide security in the form of an asset. The following sections will help you to understand everything that matters when you want to avail a mortgage loan.
What is a Mortgage Loan?
A mortgage loan, as the name suggests, is a secured loan which requires the borrower to provide the lender with a collateral guarantee in the form of a residential or commercial property. You can apply for a mortgage loan if you own a property in your name or are a joint-owner.
What Makes a Mortgage Loan Unique?
Other than attractive interest rates which start from as low as 9.80%, a mortgage loan is unique for the following reasons:
1. Wide Application
You may use a mortgage loan for anything you like. Whether you require a loan for wedding, holiday, or home repair, or need urgent funds for paying hospital bills, paying education bills, or meeting business expenses, a mortgage loan can be the best way to receive funds in your bank account.
2. Long Repayment Tenure
The mortgage loan repayment tenor can be as high as 20 years. Hence, repayments will never cause a strain on your finances.
3. Easy Eligibility Criteria
Unlike most other loans, a mortgage loan requires just one thing – a property. Although you need to submit a few other documents, those are simply for regulatory reasons. Hence, a mortgage loan never differentiates between a salaried and an unsalaried person. You can check here loan against property eligibility criteria like: what are the document required for mortgage loan, salary, property location etc.
4. Minimal Documentation
To make the process of borrowing simple, lenders like PNB Housing require very few documents to provide you with a mortgage loan. You need to submit documents like age, address, and identity-related documents, income tax returns, bank statement, processing fee cheque, and a few other documents.
5. Flexible Repayment Options
Lenders offer various methods to repay the loan. You may opt for post-dated cheques or better yet, automatic deductions through electronic clearance system. Hence, you do not have to wait in the queue any more to pay your loan EMIs.
6. Fast Approval
If your documents are in order, an approved valuer would visit your property and estimate the loan amount you are eligible for. If everything goes as per schedule, you can get the loan within a few days of applying for it.
7. High Loan Amount
A mortgage loan provides you with funds of up to 60% of your property’s market value. To receive the highest loan amount as an unsalaried borrower, you must aim for a high credit score, i.e. a credit score above 750. A high credit score ensures easy access to a loan, as it would display your credibility to the lender.
Availing a mortgage loan can be the best way to monetise your idle asset. And this can be especially helpful if you are an unsalaried person. With the help of mortgage loan, you can full fill your family desire because of low rate of interest. all the eligibility criteria discussed in this article in detail before going to avail mortgage loan real this article it will help you.