admin Posted on 12:49 pm

Put your dormant property into use and apply for a mortgage loan

A home loan is a way to obtain financing for personal or business purposes. The peculiarity of a mortgage loan is the security it must provide in order to make use of the loan. You can simply leverage the ownership of your property to obtain financing for a property you plan to buy or to meet your business requirements. There are several circumstances in which you need to obtain financing from an outside source. Banks and financial institutions offer a variety of financing options for you to choose from. With competitive interest rates and flexible repayment tenure, you can make use of a loan for personal and business purposes. You can make use of a mortgage loan for the expansion of your business, acquisition of machinery or plant, project financing, purchase of new property, market expansion.

Since it is a secured loan, it will be essential to mortgage a property against this loan. You can mortgage your dormant property and raise funds for it. It could be any property you own and the loan amount will be secured against the mortgaged property, which means you will be able to get a higher loan amount. The property can be land, building, apartment, business premises, factory, store, country house, hotel, guest house, nursing home, or industrial properties. A home loan can be tailored to your requirements and comes with several benefits like a lower interest rate, a higher loan amount, and a longer tenure. In addition, commercial entities and self-employed professionals can claim tax benefits on them.

A home loan is available to business entities, merchants, service providers, manufacturers, and self-employed professionals. For a home loan, the applicant must provide proof of income, proof of identity, and proof of address. In addition, it is important to present property documents and also make sure that the property is insured against hazards such as fire. In the case of joint ownership of a property, the co-owners will become co-applicants for the loan. The value and age of the property are the main criteria for loan approval. 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 an appraiser who will determine the market value of the property and based on it, the amount of the loan will be sanctioned. Typically, 60% of the property’s value is sanctioned as the loan amount. The tenure of this loan is longer due to the higher value and this allows the borrower to pay it back in regular installments over time. It comes with a flexible tenure of up to 180 months and a loan amount of up to 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 can transfer the property in case of regular default in the payment of installments. The Bank will also notify the payment and if it is defaulted again, the Bank will have to auction the property and you could lose ownership of it. Therefore, it is extremely important to ensure that refunds are made on time. It also offers the option to prepay the loan before the payment schedule ends. This option will save you paying interest and will also provide you with a positive credit score. People with a satisfactory or positive credit score can easily process their loan.

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