Individuals popularly opt for a mortgage loan against property to ensure a steady inflow of funds. Both salaried and self-employed individuals can apply for a LAP loan upto Rs. 5 crores*. A loan against property offers several other benefits, such as lower EMIs, instant loan approval, low-interest rates and many more.
Mortgage loan overview
A mortgage loan is a type of secured loan financial institutions offer individuals to meet their urgent monetary requirements. Mortgage loans are of three types, home loans, commercial property loans, and loans against property. The acceptable collateral for a mortgage is an immovable property, including any commercial or self-occupied property or a house in the name of a borrower.
9 best possible ways to apply for a mortgage loan against property
A mortgage loan is a long-term commitment. So before applying for one, it is important to know the best possible measures a borrower can take to make the most out of the loan. These are as follows:
- Check eligibility before applying
Individuals applying for a LAP loan must check their eligibility before applying. This saves time and reduces the chance of rejection of the loan application. Eligibility for a loan can be easily calculated using an online eligibility calculator.
- Perform extensive research
Before opting for a mortgage loan against property, borrowers must know everything about a loan against property. If not, they might come across various terms and conditions later that they might not be comfortable with. Also, thorough research helps to choose a lender offering the best interest rate and other prerequisites before applying for a LAP loan.
- Calculate EMI beforehand
To select the loan amount, calculating the monthly instalments beforehand becomes mandatory. However, if done manually, the results become prone to errors. So the use of an online LAP EMI calculator is preferable to obtain quick and accurate results.
- Maintain a good credit history
A good credit history reflects that an individual has paid off their previous loans and EMIs on time. This makes the person trustworthy in the eyes of lenders; hence, they can avail of lower interest rates or an increased loan amount.
Financial institutions exted pre-approved offers to pre-existing customers to expedite and simplify the loan approval process. These offers are available on various products including LAP and home loans. Borrowers can check their pre-approved offers by entering basic details like name and contact number.
- Choose the right time
Fluctuation in property rates is common. Hence, if a n individual applies for a loan against property when there is inflation in the property’s market price, there is a possibility of high loan amount approval.
- Choose the property wisely
A wise choice of property is important when applying for a LAP loan. For instance, if the property is located at a prime location in a city, then lenders can offer a higher loan amount at low LAP interest rates. This is so because lenders know if the borrower cannot pay off the loan, they are at liberty to sell off the property and easily recover the loan amount. However, suppose the property is in a deserted location or not in good condition. In that case, the lender will not approve the LAP loan application or the loan amount an individual asks for.
- Diligently choose the loan tenor
Usually, lenders offer longer tenors on low LAP interest rates, while charging higher interest rate for short tenors. This might affect the overall interest rate and additional charges on the loan. So it becomes imperative to estimate the monthly instalments and choose the loan tenor accordingly.
- Wisely choose the type of interest rate
There are two types of loans against property interest rates, fixed interest rate and floating interest rate. Accordingly, individuals should compare the EMIs before opting for one.
Steps to apply for a mortgage loan
The quick steps to apply for a loan against property are as follows:
Step 1: Navigate to the website and fill out the application form.
Step 2: Accurately enter the details asked for.
Step 3: Enter the financial and income details to assess the loan amount.
Step 4: Finally, click on the submit button to complete the application.
A little effort before deciding on a mortgage loan can benefit greatly. The tips above are easy to follow when deciding on a mortgage loan. Hence, individuals can ensure that they would be able to make the most out of a mortgage loan against property in the easiest possible way.
