Mortgage Loan and Home Loan Rate of interest: We often think of taking out a loan when money is suddenly needed for emergencies. In the market there are many type of loans are available such as B. Personal Loans, Gold Loans, Wedding Loans, etc.
If you live in your house and need money for a job, you can get a loan by mortgage the house at the bank. It’s called a mortgage loan.
The mortgage loan is also like any other loan that we take against any kind of guarantee.That is, when we take out a loan by placing a mortgage on the house or property, it is called a mortgage loan. This loan is taken out to buy or build a new house.
The loan amount depends on your eligibility and the bank’s credit policy. The mortgage is also commonly referred to as a loan against the property. Home Loan Interest Rate
Mortgage Loan Type:
Home Equity Loan or Oral Home Loan
In this type of loan, the HFCs verify the title document and then the loan is offered by signing the loan agreement. In this type of Loan, No Mortgage is needed. It is very common for people in India but most companies require ownership documents.
Registered Mortgage Loan
In this type of loan, the mortgage is registered with the required authority. The land charge is recorded in the state statistics. The borrower usually also pays the registration fees.
Who Can Get Mortgage Loan
Different Banks and Companies have Set Different requirements to avail Mortgage Loan, Bais Requirments are these-
- Resident of india
- Age should be minimum 25 years and maximum 75 years
- Self-employed, Running same business for at least three years
Documents For Mortgage Loan
- Filled Mortgage loan application form with Pan Card Copy.
- KYC documents like: Aadhar Card / Driving License / Voter ID Card / Lease or Rent Agreement
- Business Wok Proof: Sales Tax / Service Tax / Excise / VAT Registration / Business License / Partnership Deed / Certificate of Practice
- Income proof: ITR statement for past 3 years, balance sheet, P&L account and bank account statement for past 6 months
How to Apply for a Mortgage Loan
After fulfilling the eligibility and required documents for mortgage loan, one can apply for mortgage loan.
- first you have to fill the application form and submit it to the bank.
- Bank employees contact you and you are asked for necessary information.
- Your income, repayment capacity etc. are also assessed.
- Inspection of the property to be mortgaged is done.
- Once you are satisfied with your details, the Institute officials will get in touch with you.
- You can also apply for a mortgage loan by visiting the nearest branch or outlet of the financial institution.
Benefits of the Mortgage Loan
A mortgage loan helps to get upto 60-80% of the Property’s current value as a loan.
A Mortgage loan of 5 lakh to 10 crore can be Borrowed for a maximum tenure of 15 to 20 years. The mortgage loan repayment period is set by the housing finance companies.
Just like a home loan, the down payment on a home loan can be as high as 1020%. You can repay your Mortgage loan early Before your tenure Finishes. On your Mortgaged Property, the bank may ask you have a insurance too
This loan is granted to the borrower. As a rule, 80 percent of the value of the property is given out as a loan. In some cases, this amount reaches up to 85-90 percent.
Repayment period: Speaking of the repayment period, the term of the loan is known. During this time, the loan will be disbursed through EMI.
Home Loan Interest Rate: The home loan interest rate charged by mortgage lending companies on loans is counted as an interest rate.
Home loan rate of interest List
- Punjab and Sind Bank Home loan rate of interest 6.65-7.60%
- Bank of Baroda Home loan rate of interest 6.75-8.35%
- Punjab National Home loan rate of interest Bank 6.80-7.90%
- Central Bank of India Home loan rate of interest 6.85-7.30%
- UCO Bank Home loan rate of interest 6.90-7.25%
- Union Bank of India Home loan rate of interest 6.90-7.65%
- State Bank of India Home loan rate of interest 6.95-7.65%
- Bannk of Maharashtra 6.90-8.40%
- Canara Bank Home loan rate of interest 6.90-8.90%
- Bank of India Home loan rate of interest 6.95-8.35%
- Indian Overseas Bank Home loan rate of interest 7.15%
Private banks Home loan rate of interest List
- Kotak Mahindra Bank Home loan rate of interest 6.64-7.30%
- ICICI Bank Home loan rate of interest 6.75-7.45%
- Axis Bank Home loan rate of interest 6.90-11.50%
- HSBC Bank Home loan rate of interest 7.20-7.75%
- Karun Vyas Bank Home loan rate of interest 7.20-9.55%
- Karnataka Bank Home loan rate of interest7.50-8.75%
- Federal Bank Home loan rate of interest 7.70-7.75%
- Dhanlaxmi Bank Home loan rate of interest 7.85-9.00%
- South Indian Bank Home loan rate of interest 7.95-9.45%
- RBL Bank Home loan rate of interest 10.20-10.70%
Housing finance companies Home loan rate of interest List
- Bajaj Finserv companies Home loan rate of interest >=6.75%
- LIC Housing companies Home loan rate of interest 6.90-8.05%
- Tata Capital companies Home loan rate of interest>=6.90%
- HDFC Ltd companies Home loan rate of interest 7-7.55%
- PNB Housing companies Home loan rate of interest 7.35-9.55%
- GIC Housing companies Home loan rate of interest >=7.45%
- Repco Housing Finance companies Home loan rate of interest >=7.75%
- Indiabulls Housing companies Home loan rate of interest >=8.65%
- Aditya Birla Bank companies Home loan rate of interest 09-12.50%
- Reliance Home Finance companies Home loan rate of interest 9.75-13%
Balance reduction: The loan balance continues to decrease on a daily, monthly and yearly basis. The annual balance reduction system is almost complete, and now the balance will only be reduced monthly.
Down Payment – In order to qualify for a home loan, the borrower must pay a certain amount known as the down payment. The deposit can be between 10 and 20 percent.
Prepayment: If the customer wishes, he can repay the loan early by making a prepayment. Prepayment allows the customer to save on interest by paying off the loan before it is due. customers have the option of partial prepayment or full prepayment. Many mortgage lenders also charge a nominal penalty for prepayment.
Fees: This includes all other fees charged by home finance companies. These fees may be collected at the time the loan application is submitted. These include management fees, verification fees, legal fees, technical fees, etc.
Loan Repayment: Borrower must pay EMI monthly for the life of the loan. This EMI includes interest and principal. In the early years the interest portion is higher than the EMI and then the EMI increases the principal amount.
FAQs on Mortgage Loan
Always compare banks
Many banks should be compared while taking a loan. Do not go to any one bank and take a loan. Rather, compare the interest rate, processing fee, loan amount, loan tenure and other charges of several banks.
After that, you should take a loan from the same bank which provides loan at affordable rates you.
Choose the amount you need
Many people make mistakes in choosing the loan amount. They keep the loan amount maximum while you should choose the amount as per your requirement.
By doing this, interest has to be paid on less amount, as well as top up can also be taken at the time of need.
Purpose of Mortgage loan
Whenever you apply for a mortgage loan, your purpose for taking the loan should be clear. The bank will definitely ask you the purpose of taking the loan, for what purpose you will use the loan.
Your objective should be such which is very important for you like for children’s education, for children’s wedding expenses, for growth in business.
If you tell the bank that you will invest the loan amount in the stock market or buy any other property, then the bank will not give you a loan for this and your loan application will be rejected.
Mortgage Loan EMI
The choice of EMI is very important for loan repayment. Keeping all your expenses in mind, the EMI of the repayable amount should be made only.
Financial problems can arise due to EMI of higher amount.
