A mortgage loan against property refers to the amount borrowed by an individual from a bank against his property. The mortgage property under this agreement is subject to physical guarantee in case of failure of repayment on time as mentioned in the agreement. The failure of loan repayment gives rights to the bank to seize the mortgaged property.
A property can be mortgaged with a bank for different purposes. However, the major reasons for keeping a physical property mortgage against the particular loan amount are; business expansion, higher studies, wedding arrangements, clearance of previous loans, etc.
If you want to know more about the property mortgage scenario, keep reading further. This informative will serve as a property mortgage loan guide for your next loan application.
Process To Get A Mortgage Loan Against Property In India
A mortgage property loan is slightly different from a home loan, though property is kept as a guarantee in both cases. However, mortgage loans against property give freedom for the utilization of sanctioned loan amounts for various purposes. You can visit a trusted property listing site to check for the updates on loans against property. Let’s discuss the process of applying for the said loan.
1. Property Valuation
As soon as a person approaches the bank for a loan against property. The first thing the bank does is the valuation of the property. Based on the actual market value of the mortgage property, the loan amount is approved by the financial institution.
2. Required Documents
The borrower needs to furnish various documents required to apply for a mortgage loan against property in India.
- Aadhar Card
- Age Proof
- Bank Statements
- Form 16
- Income Proof
- Income Tax Returns
- Latest Salary Slips
- PAN Card
- Previous Loan Records
- Residence Proof
- Sales Agreement / Deed
- Telephone Bill
In different cases, banks may ask for additional documents to fulfil other criteria.
3. Purpose Of Applying For Loan
It is necessary for a loan borrower to mention the purpose of applying for this loan in the application form. Based on your financial needs and urgency, the bank decides how much loan amount to be approved.
4. Loan Approval Percentage
Many people have this notion in mind that they can get as much loan amount from the bank as they demand, but in reality, the bank calculates the associated risk, and a particular percentage of the total market value of the mortgage property is approved.
5. Witnesses
It is mandatory for the borrower to bring 2 witnesses along who will give a guarantee on his behalf against the loan. They need to furnish their government documents as proof.
Conclusion
If you still have any questions, or you need answers to your queries, you can visit any trusted property portal in India to check for the latest updates on it. You can also connect with an industry professional like “Property Scroll” for expert advice. An experienced realtor can guide you better about the step-by-step process for a mortgage loan against property.
