There will be many of you who have heard or read about loan against property at some point or the other but do not have the right information about it. Don't worry, in this blog, we will provide you with all the information like what is mortgage loan and how to apply for it. Let us first know what is meant by mortgage?
A mortgage loan is a loan taken against the property. In which a person mortgages his property with a financial institution and takes some amount on it as a loan and after paying the loan amount gets back the ownership of his property. Loans against property are generally taken by individuals who buy a new home. He mortgages the documents of the newly purchased house with the financial institution taking a loan against the registration of the house.
- Loan Against Property (LAP) – Loan Against Property is commonly known as LAP i.e., ‘Loan Against Property. LAP is offered for commercial and residential properties. Borrowers have to pledge their assets to get funds from lending institutions. The original documents of the property have to be kept with the financial institution till the loan amount is fully repaid. The borrower can utilize the loan amount for any personal or business requirement.
- Commercial Purchase – Business purchase loans are generally taken by businessmen and entrepreneurs. They take such loans to buy properties like shops, office spaces, and commercial complexes. The interest rates of this loan are different from other loans. This loan amount is used only for the purchase of the property.
- Loan Against Home Registry – It is the dream of every middle-class family to have their own house. In such a situation, a mortgage loan is the best option for the reconstruction of the house. Nowadays there are many such financial institutions from where you can easily get a loan at affordable interest. For the loan, the borrower has to mortgage his home registry with the financial institution, which is returned to him after the loan is repaid.
Who can take a loan against property?
For loans against property, different financial institutions have created different eligibility criteria. Some of the most common criteria are listed below.
- you are a resident of India
- Your age should be minimum of 25 years and a maximum of 75 years
- If you are self-employed, you must have been in the same business for at least three years
What documents are required to get a loan on land?
There are certain documents you need to submit while applying for a home loan against a property. Some of these documents are:
- Correctly filled mortgage loan application form along with a copy of your PAN card
- Some accepted KYC documents like Aadhar Card / Driving License / Voter ID Card / Lease or Rent Agreement
- Business Proof: Sales Tax / Service Tax / Excise / VAT Registration / Business License / Partnership Deed / Certificate of Practice
- Income proof: ITR statement for last three years, balance sheet, P&L account, and bank account statement for last six months
How to Apply for All Mortgage Loans?
To apply for a mortgage loan, you can apply either on the website of the financial institution or in person by visiting their branch office. Follow the steps below to apply online on the website
- Go to the mortgage loan on the property webpage
- Check your eligibility from the Eligibility Criteria section available on the website.
- On the mortgage loan page, check the documents required for a housing loans against a property.
- Click on the ‘Apply Now' tab and fill in the required information, and submit the online form.
- Once you are satisfied with your details, the Institute officials will get in touch with you.
- You can also apply for a mortgage loan by visiting the nearest branch or outlet of the financial institution.
Hope that now you have in your mind how to take a loan against property or how to take a loan in 5 minutes? Like the questions that were being raised, now you must have calmed down and you will have got complete information related to the mortgage loan. So, if you are also thinking of taking a mortgage loan, then apply for your loan today at Shubham.co.
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