Buying a home is a dream to many but an overwhelming experience, too, given the finances involved. That’s why it is referred to as a once in a lifetime-buy. Many plan to buy their home very early in their life to finish the commitment sooner. But the finances that range from lakhs to crores cannot be paid immediately. Mortgage loans have come into existence to help people achieve their dream by paying the lump sum in parts to the lender.
What Is a Mortgage Loan?
Mortgage loans are the type of loans that are sanctioned against an immovable property like a home or a commercial property. The asset is considered as collateral until the borrower repays the total loan amount. It allows you to buy a home even when you don’t give a lump sum right away. When you sign a mortgage, your lender will agree to finance for you. The amount is repaid in monthly instalments for a particular tenure chosen by the borrower. The lender will finance only 60% of the property’s value, and the rest of the amount needs to be borne by the borrower in case of a residential property. And if the property is a commercial one, then the amount equivalent to 70% of property value will be disbursed to the borrower. Mortgage loans are secure, and hence the interest rates charged on these loans are unsecured.
The mortgage loan is an umbrella term for three loan types
- Home Loans
These loans are availed only to purchase a home
- Commercial Property Loans
These loans are availed only to purchase commercial properties
- Loan Against Property
These types of loans do not have any usage restrictions. You can use them for any personal purpose. Such loans are availed as they offer a lump sum at competitive interest rates compared to unsecured loans like personal loans.
To qualify for a mortgage loan, you need to meet specific eligibility requirements. Let’s check out what they re
Eligibility To Avail a Mortgage Loan
The eligibility for a loan against property is calculated based on numerous features. You can assess your repayment potential based on your income, net monthly obligations, location, CIBIL score, qualifications/job profile, etc. The loan amount will also depend on the valuation of the property you are pledging and the availability of required documentation.
Features Of a Mortgage Loan
They Can Boost Your CIBIL Score
The mortgage loans are backed by valuable security, and the loan amounts available are mostly lump sum. Hence repaying them contributes at least 25% of your CIBIL score. This way, they can boost your CIBIL score in a big way.
Lump Sum Amount Credited
The mortgage loans can span up to 12.5 crores based on the collateral pledged, and hence it aids in every dream fulfilled. The loan against property helps you focus on essential requirements at competitive interest rates.
The loans are processed, and the transaction is done digitally. Hence the paperwork and taxing formalities are not applicable anymore. The loans are processed and credited within 24 to 48 hours.
Flexible Repayment Tenure
The high-value loans with collateral offer flexible repayment tenures that span between 1 to 15 years. This way, you can quickly repay the loans.
Increased Loan to Value Ratio
The loans credited are offered up to 70% of the pledged property value allowing the borrower to avail maximum benefit.
How to Apply for a Mortgage Loan?
Applying for a Mortgage loan through Fullerton’s robust digital platforms is a cake walk with minimal steps. The documentation and application process are easy. Additionally, the digital verification process provides you with maximum convenience while applying for the mortgage loan. Let us check the steps to apply for the loan.
- Check if your CIBIL score is greater than 750.
- Keep all your documentation required ready in advance.
- Collect the property details that you plan to mortgage.
- Visit the loan application page, and select Loan against Property.
- Fill the application form online.
- The customer care agent assigned to you will contact you to take the process further.
Once all details have been verified by the lender and the legality of your property has been checked. The lender will disburse the home loan amount to your bank account.
Mortgage loans are ideal ways to use your immovable assets without selling them during emergencies or personal requirements. The money can be withdrawn, pledging the asset as per your need at lesser interest rates than a non-collateral loan. The best part is mortgage loans also offer prepayment at zero charges so you can pay back your loan well ahead of your tenure once finances improve.
Fullerton mortgage loans are the best if taken from Fullerton India InstaLoan app. We offer the best interest rates and speedy application process to you. You can use the Fullerton mortgage loan EMI calculator from our digital platforms to calculate the EMI that you will be paying every month. This will help you arrive at the best option that suits you.