Individuals looking to avail a credit option to fulfil their substantial monetary requirement can opt for a mortgage loan. Lending institutions offer a considerable loan amount against residential and commercial properties with a low-interest rate.
Moreover, borrowers get an extended tenor to repay their borrowed amount without disrupting other necessary expenses. However, individuals planning to avail a loan against property should go through the application process to get assured approval.
Mortgage loan application process
To start with the mortgage loan process, borrowers must first know how to apply for a loan against property. Individuals need to keep necessary documents handy and follow this mentioned procedure to proceed:
Step 1: Start with a thorough research
Individuals should conduct thorough research on various lending institutions before selecting one. Loan against property interest rates, tenor, EMI, etc., varies from one lender to the other. So, individuals should compare rates of different lending institutions and opt for the convenient ones.
Step 2: Assess the maximum loan amount
The maximum loan amount an individual can borrow depends on several factors, such as property’s market value, lender’s criteria, etc. So, applicants should use mortgage loan eligibility calculator on a lender’s website to determine the maximum sanctionable amount.
- Check LAP eligibility criteria
Eligibility criteria for LAP may vary depending on lending institutions. However, every individual should meet the following criteria to avail mortgage loan:
Citizenship- Applicant should be an Indian citizen with property within the boundary of this country.
Age- Salaried applicants between 28 to 58 years and self-employed applicants between 25 to 70 years are eligible to apply for loan against property.
Employment record- A salaried applicant should have a job experience of 3 years at a reputed MNC or private/public firm. However, a self-employed individual should have 5 years of business establishment.
- Fill out mortgage loan application form
Individuals can visit a lender’s website and fill out mortgage loan application form with the necessary details. However, they can also apply offline by visiting the nearest branch with the required documents.
- Submit the documents
Once the application form is filled out, individuals must submit necessary documents as per the lender’s requirement. It includes identity proof, address proof, property papers, income proof and so on. Besides, some reputed institutions offer doorstep services to collect the documents from the borrower’s place.
- Get the documents verified
In the next step of mortgage loan process, lending institutions will verify every document produced by an applicant. They will match the personal, employment, income, etc., details written on individuals’ application form with the provided document to determine their authenticity. Some financial institutions also offer face-to-face verification by visiting the applicant at his place.
- Legal check and property evaluation
The lenders will proceed with the second step of verification. They will evaluate the property and its legal documents to ensure it is free from legal disputes. It will also help to determine the value of the pledged property and the mortgage loan amount one can borrow against it.
- Wait for sanction letter
Lenders will offer a loan against property sanction letter after verifying the provided documents. The sanction letter offered by the lender consists of the loan terms and other necessary details. One has to accept the loan offer within the specified period. The loan amount will be disbursed after one accepts it.
- Loan amount disbursal
After completing all the stages of verification process, lenders will disburse the sanctioned loan amount to borrowers’ accounts. Reputed lenders conduct this entire procedure within as early as 72 hours. Borrowers can receive the entire amount in their bank account.
Several lending institutions provide pre-approved offers to borrowers on various financial products such as home loans and others. Borrowers can check their eligibility for pre-approved loan offers by entering necessary details like names and contact numbers.
Thus, applicants can opt for a hassle-free mortgage loan application by following the mentioned procedure. Moreover, applicants can use a loan against property EMI calculator to know the estimated EMI payable. It will help them plan other expenses in a better way and continue with an uninterrupted repayment procedure. Besides, they can decide the loan amount as per their capability and can maintain a reliable credit score.
