1- Introduction About Mortgage Loan :
Everyone wants to make own assets. For such a task, they need to take help from a huge amount of money. It is not easy to gather lots of funds quickly. Here, the individuals can consider the way of a mortgage loan.
These types of loans can provide a huge amount of money and make the way of buying land or property easier. Selection of a number of installments is completely based on the applicants’ choice. It may be longer or shorter.
If we talk about the nature of a loan then it is secured. The property which is purchased by the users is a mortgage to the funds’ provider. After paying the complete money, the individuals can own the house completely. In case borrower gets failed in repaying the loan amount then the lender keeps the property and sells it for recovery.
2- Popular Mortgage Loans in Hyderabad :
| Bank | Loan Against Property Rate | Processing Fee |
| SBI Loan Against Property | 10.30% | 1.00% |
| Max Rs. 50,000 | ||
| HDFC Loan Against Property | 9.55% | 1.00% |
| ICICI Bank Loan Against Property | 11.95% | 0.50% |
| Min Rs. 5,000 – Max Rs. 10,000 | ||
| Axis Bank | 11.25% | 0.50% |
| Min Rs. 5,000 – Max Rs. 10,000 | ||
| Citibank | 8.80% | 0.25% |
| Indiabulls | 10.50% | 1.00% |
| Min Rs. 5,000 | ||
| PNB Housing Finance | 10.35% | 1.00% |
| Standard Chartered Bank | 10.10% | 1.00% |
| Min Rs. 10,000 | ||
| DBS Bank | 12.15% | 0.50% |
| Max Rs. 10,000 | ||
| OBC | 10.90% | 0.50% |
| Karur Vysya Bank | 11.70% | 0.50% |
| IndusInd Bank | 9.50% | 2.00% |
| HSBC Bank | 9.70% | 1.00% |
| Min Rs. 10,000 | ||
| DHFL | 12.00% | 2.00% |
| Min Rs. 15,000 | ||
| Central Bank of India | 11.10% | 0.50% |
| Max Rs. 20,000 | ||
| IDFC Bank | 10.00% | 1.00% |
| Min Rs. 5,000 | ||
| Andhra Bank | 10.75% | |
| DCB Bank | 12.72% | 1.00% |
| PNB | 10.20% | 0.90% |
| Max Rs. 45,000 | ||
| United Bank of India | 10.75% | 1.00% |
| Yes Bank | 10.50% | 1.00% |
| South Indian Bank | 10.60% | 0.50% |
| Lakshmi Vilas Bank | 11.55% | 1.20% |
| Karnataka Bank | 10.90% | |
| Indian Bank | 12.10% | 1.17% |
| Federal Bank | 11.90% | 0.50% |
| Min Rs. 3,000 – Max Rs. 7,500 | ||
| Dhan Laxmi Bank | 11.68% | 1.50% |
| Min Rs. 10,000 | ||
| Corporation Bank | 11.40% | 1.00% |
| Canara Bank | 11.70% | 1.00% |
| Min Rs. 5,000 – Max Rs. 50,000 | ||
| Allahabad Bank | 14.15% | 0.53% |
| Min Rs. 2,670 – Max Rs. 80,100 | ||
| RBL Bank | 13.05% | 1.25% |
| Min Rs. 7,500 | ||
| Union Bank of India | 11.60% | 0.50% |
| Syndicate Bank | 11.65% | 0.50% |
| Min Rs. 500 | ||
| Punjab and Sind Bank | 11.30% | 1.00% |
| Min Rs. 2,000 – Max Rs. 50,000 | ||
| Kotak Bank | 9.60% | 1.00% |
| Jammu And Kashmir Bank | 12.20% | 0.20% |
| IDBI Bank | 10.20% | 1.00% |
| Edelweiss | 12.00% | 1.00% |
| Dena Bank | 10.45% | 1.00% |
| Bank of India | 10.65% | 1.00% |
| Min Rs. 5,000 – Max Rs. 50,000 | ||
| Indian Overseas Bank | 10.90% | 0.62% |
| Min Rs. 890 – Max Rs. 8,900 | ||
| Vijaya Bank | 10.55% | 0.55% |
| UCO Bank | 10.80% | 1.00% |
3- Mortgage Loan Features and Benefits
Most of the individuals are facing confusion in making the final decision. As a result, they do not know that what is perfect for them choosing mortgage loan or other loans. For buying property, the option of this particular type of loan is perfect. Following are some major benefits of considering its way.
Lower interest rates – the interest rate of these types of loans is lower as compared to other types of loans. The major reason behind this particular thing is security. The purchased property is kept by the bank that’s why they are charging lower interest rates.
Do investments easily – some individuals are not able to invest funds in the property due to lack of money. The option of mortgage loan makes all these things easier. It provides the required amount of currency by which you can easily invest funds. With it, you do not need to pay the whole amount at once. You are required to pay a small amount of money as the down-payment only.
Pay installments – by considering its way, the applicants should not put efforts into gathering lots of funds. The financial institution helps in paying the complete amount of money. With it, they are required to pay balance money to a bank in small installments. It depends on the applicants that how much installments they want to pay.
Tax relaxation – tax is an amount of money which is proportionate from the total income. It is paid to the government. If you are availing services from the mortgage loan provider then you will get some relaxation in the taxable income. As a result, you need to pay a small amount of money as the tax. It reduces overall expenses of an individual.
Complete freedom – when you get mortgage loan then it does not mean you are not an owner of the property. The users have complete freedom to make any kind of changes or modification. The main thing in which you need to take permission from the funds provider is selling activities.
Due to all these benefits, there are numerous individuals are choosing the way of a mortgage loan. You should access its services and try to increase assets quickly.
4- Types of Mortgage Loans
There are different types of mortgage loans offered by the financial institutions. In the upcoming points, I’m going to mention some important ones.
- Simple mortgage
The individual needs to bind himself for repaying the loan on the time. For the loan security, rights of the home are transferred to the funds provider. The motive of transferring the rights is to sell it in case borrower gets failed to repay the money. The borrower gets the property possessed by making all payments back.
- Unstructured mortgage
The property possession is not transferred and mortgagee can hold it. The buyer is able to use the property for earning purposes such as – rent or some other purposes.
- Fixed rate mortgage
These types of mortgage loans are including a fixed rate of interest. With it, the repayment system is working on a monthly basis and in a balanced manner. The individuals need to pay a fixed amount every month. Due to it, they can easily estimate the month liability easily.
- Adjustable rate mortgage loan
These types of mortgage loans are associated with lots of factors such as – not completely fixed interest rates. The rate of interest which is decided by the bank in an initial time period is fixed for a limited time. After that particular time, the individuals need to face some changes.
These may be beneficial or may become a reason for a loss. Sometimes, the interest rates become higher and sometimes it becomes lower. With it, the funds providers are offering a specific discount in the initial time period of the loan. Another thing is that they are charging a higher amount of money as additional charges.
5 Mortgage Loan Eligibility Criteria :
1. Income
2. Age (Min. 21 Years)
3. Property Valuation
4. Existing Liabilities (if any)
5. Current Work Experience
6. Financial Documents
7. Number of Dependents
6- Documents Required for Mortgage Loan:
For Salaried:
1. Application form with photograph
2. Identity and Address Proof
3. Latest Salary Slips
4. Form 16
5. Bank Statements (Last 6 months)
6. Processing fee cheque
For Self-Employed:
1. Application form with photograph
2. Identity and Address Proof
3. Proof of business existence & Education Qualifications.
4. Last 3 years ITR
5. Last 3 years P&L and Balance Sheet
6. Bank Statements (Last 6 months)
7. Processing fee cheque
Frequently Asked Questions :
What is the importance of a good credit score?
Credit score playing an important in the loan related activities. The individuals those have a good credit score they will get some specific benefits such as – lower interest rates. It is the biggest importance of maintaining a good credit score.