Do you own a property? Do you want to make the most of your property while maintaining its possession? Banks and Financial Institutions across the country will help you do the same. Expand your business or meet your personal goals with your idle property. Mortgage loan is a secure and risk free option for the financial institutions as well as the applicants. The applicants need to pledge a property for the loan and based on the same, the loan amount will be determined. Banks and financial institutions consider it a secure loan and allow individuals to make use of their idle property while enjoying finance on the same. It is not restricted to business and can be applied for personal purposes as well.
You can use your commercial and residential property to apply for the loan. It includes property which you are currently using or the one which has been rented out. You can use a land, house, farmhouse, hotel or a nursing home. Even a vacant piece of land can be used for the same. The minimum required for the property in this case is that its value should be above Rs.50 lacs and its maximum age should be 50 years. The minimum age of the applicant should be 25 years. Documentation for the same includes identity proof, address proof, income proof and property papers. In this case, property papers are extremely important for successful processing of the loan. Once the application has been made, the bank or financial institution will assign a valuer to value the property. He will determine the market value of the property based on which the loan amount will be determined. Higher the market value of the property, higher will be the loan amount. The loan amount sanctioned is usually 50%-60% of the value of property.
Along with the application form, an applicant needs to attach property documents and identity as well as income proof. Holding a positive credit score helps in the processing and approval of the loan. Mortgage loan allows businesses to achieve their goals while making use of their property. It is important to consider the current outstanding debt and the monthly flow of income when applying for the loan. The EMI will become a regular monthly outflow from the income; hence the applicants need to consider their current income and the ability to repay the loan in due time. In case of default in the loan repayment, there could be a negative impact on the credit score of the applicant. The loan allows businesses and individuals to make use of their idle property and raise finance on the same. It carries a low interest rate and has flexible repayment tenure which will allow regular and timely repayment of the dues. The interest rates vary from bank to bank; hence it is advisable to scout the market before approaching an institute for a loan. Choose a trustworthy and reliable financial institution for your partner in growth.