Put Your Idle Property to Use and Apply for a Mortgage Loan
A mortgage loan is a form of raising finance for your personal or business purpose. The peculiarity of a mortgage loan is the security that you need to provide in order to avail the loan. You can simply leverage the property owned by you in order to raise finance for a property you are planning to purchase or to meet your business requirement. There are various circumstances when you need to raise finance from an outside source. Banks and Financial Institutions are offering a variety of financing options for you to choose from. With competitive interest rates and flexible repayment tenure, you can avail a loan for personal as well as business purpose. You can avail a mortgage loan for the expansion of your business, acquisition of machinery or plant, project finance, purchase of new property, expansion of the market.
Since it is a secured loan, it will be essential to mortgage a property against this loan. You can mortgage your idle property and raise finance on it. It could be any property owned by you and the loan amount will be secured against the property mortgaged, which means you will be able to raise a higher loan amount. The property could be a land, building, apartment, commercial premise, factory, shop, farm house, hotel, guest house, nursing home or industrial properties. A mortgage loan can be customized as per your requirements and comes with various benefits like lower rate of interest, higher amount of loan and a longer tenure. Further, business entities and self-employed professionals can claim tax benefits on the same.
A mortgage loan is available for business entities, traders, service providers, manufacturers and self-employed professionals. For a mortgage loan, the applicant needs to provide proof of income, proof of identity and address proof. In addition, it is important to submit documents of the property and also ensure that the property is insured from hazards like fire. In case of jointly holding a property, the co-owners will become the co applicants for the loan. The value and age of the property are the main criteria for the approval of the loan. Based on the same, and the market value of the property, the loan is sanctioned. Once the application is processed, the Bank or financial institution will appoint a valuer who will determine the market value of the property and based on the same, the loan amount shall be sanctioned. Usually 60% of the value of the property is sanctioned as a loan amount. The tenure for this loan is longer because of the higher value and this enables the borrower to repay the same in regular installments over time. It comes with a flexible tenure up to 180 months and loan amount as high as Rs.15 crore.
In case of a secured loan, it is important to pay the installments on time. Since the property is mortgaged to the Bank, the Bank may transfer the ownership in case of regular default in payment of the installments. The Bank will also provide notice for the payment and if the same is again defaulted, the Bank will have to auction the property and you could lose the ownership of the same. Hence, it is extremely important to ensure that the repayments are done on time. It also offers the option to prepay the loan before the repayment schedule ends. This option will spare you on the interest payment and will also provide you a positive credit score. Individuals with a satisfactory or positive credit score can have their loan easily processed.
