Easy To get Mortgage loan in India By Nkb Kredit
Ditch Rent, Build Memories : Get Easy Mortgage loan in India
CA. Naresh Bansal
CEO & FOUNDER
+91 7503211000
🏠 We offer flexible loan options tailored to your dreams, your income, and your unique timeline. No one-size-fits-all approach here, just personalized solutions for your happily ever after.
🏠 With competitive interest rates and clear repayment plans, you can watch your investment grow into a solid brick-and-mortar legacy for generations to come.
What is a Mortgage Loan?
A mortgage, or mortgage loan, is a special type of loan taken against property in which a person pledges his property to a financial institution as per the stipulated time limit and takes some amount as loan and the loan amount is After paying the amount, he gets back the ownership of his property.
It is also called a mortgage loan. As a matter of fact, mortgage loans are taken by individuals who purchase a new home. They mortgage the documents of the newly purchased house with a financial institution and take a loan against the house registry.
Why a Mortgage Loan is so important?
Mortgage lending is important for individuals to become home or property owners by enabling them to buy a property with a fraction of the whole price.
It provides financial benefits, promotes long-term investments and provides tax benefits. Additionally, the mortgage payments build equity, establish credit, and provide stability, making it an important tool in realizing the dream of home/property owner.
Types of Mortgage Loans
Equitable Mortgage or Oral Mortgage
In oral Mortgage Loan, housing finance companies (HFC) check the documents of your property and after signing the loan agreement, the loan is offered to you.
In oral Mortgage Loan, there is no need to register the mortgage. Oral Mortgage Loans are very common in India, but most companies ask for property documents.
Registered mortgage
In a registered Mortgage Loan, the mortgage is registered with the relevant authority. In fact, the charge for mortgage registration of your property is recorded in the government statistics. In this method, the person taking the loan usually pays the registration charge.
Mortgage calculator
- To plan your budget: For many, getting a mortgage is a life-changing financial decision. However, mortgages are complicated, and nobody wants to commit to unaffordable monthly payments. Instead of going in without preparation, a mortgage calculator will help you understand what is affordable in your scenario.
- Calculate an appropriate down payment: Choosing the correct down payment is one of the most important ways a buyer can improve loan conditions. A greater down payment at the start can shorten the loan agreement or reduce monthly payments because interest is computed each year based on the outstanding principle loan. Buyers, especially first-time buyers, may not have enough cash for a significant down payment. Calculators can assist them comprehend how different down payment amounts affect their repayment plan and find the sweet spot.
- To explore with variables: Early mortgage study is the time to evaluate factors to determine your budget. Using a calculator to change interest rates, payback terms, and down payments will help you comprehend extremes: when can you pay off the loan? What would happen if interest rates changed significantly?
- To compare loan types: The ability to compare loan offers side-by-side makes mortgage calculators valuable. Would you prefer a longer loan term or lower interest rate? A 30-year fixed-rate mortgage has a lower monthly payment, but shorter terms save interest and pay off faster.
When you are thinking of taking a Mortgage Loan:
Whenever a person takes money against his property to take a Mortgage Loan, then for this you have to apply in any bank or financial institution.
First of all, before applying anywhere, it is very important to keep certain things in mind. So that you do not suffer any loss in future, let us know –
- If your property is in the name of more than one person, then to take a Mortgage Loan from the bank, it is necessary to have the consent of all of them.
- Whenever you apply for a loan in the bank, first of all you evaluate your property in the market, what is its value in the market and what is its condition, only then you apply to the bank.
- If you mortgage your property for a loan, you cannot send your property to anyone without repaying the loan.
- If for some reason you do not pay the loan installment on time, the bank has the right to seize your property and sell it to recover the loan amount.
What type of documents required for mortgage loan?
- All registered chain documents of ownership of plot allotment from the beginning (power of attorney in case of general power of attorney)
- Building construction permission certificate and approved map (Municipal Corporation, Gram Panchayat etc.)
- In case of flat, registered cell/allotment letter/agreement
Personal information
- Photo passport size – photo identity card of the applicant, voter identity card, PAN card, Aadhar card, passport, (PAN card is mandatory) PAN card of the property owner is mandatory.
- Proof of residence: telephone bill, electricity bill, identity card given by the Election Commission, life insurance policy receipt or Aadhaar card.
- Income related proof -If the applicant is in employment, salaries slip/certificate of the last three months and Form No. 16A/Income Tax Return of the last two years (for three years if the loan amount is more than Rs 50 lakh).
If the applicant has a business, a profit and loss sheet, a balance sheet, income tax returns of the last two years (for three years if the loan amount is more than Rs 50 lakh), a business registration certificate issued by the competent authority, and business license, bank account statement. last 6 months
In case of a pensioner, 6 months statement of pension payment order and pension credit account.
- If father/son or husband-wife are co-applicants, proof and consent letter regarding their income as per above.
- Photocopies of documents submitted along with the application will be verified by the bank officer.
- In addition to the above, documents required by the legal advisor/bank officer.
Why mortgage and home loan has a big difference?
- Maximum loan amount: Mortgages can usually only be obtained up to 50-70% of the market value of the property (also known as the loan-to-value ratio or LTV ratio), which is assessed by the lender or a third-party advisor appointed by the lender. Is. At the same time, home loan can be taken up to 90% of the agreement value. Also, this LTV ratio may vary as per the type of property, age of the location and from lender to lender. However, some lenders may also offer mortgage up to 90% of the property value in some cases depending on the borrower’s financial track record, repayment tenure and property type.
- Tenure: Generally, mortgage loans are offered for tenure of 20 years or till the retirement age of an individual (and usually 60- 65 years of age for self-employed individuals), whichever is shorter. . Whereas, home loan can be taken for a maximum tenure of 30 years or retirement age, whichever is lower. This tenure also varies from bank to bank.
- Interest Rates: Mortgage interest rates are higher than home loans. Typically, the minimum interest rate for home loans starts from 7%; whereas for LAP it starts from around 9% (as of July 2020). Now, these rates may vary from bank to bank, and according to the amount and tenure of the loan, along with any other criteria as per the respective lender.
Additionally, home loans are eligible for subsidy by the government, which further reduces the effective interest rate. Mortgages are not eligible for any such subsidies.
- Prepayment charges: There are no charges for prepayment or foreclosure on home loans taken by individuals if they are repaid through their own funds. However, some lenders charge 1-2% of the prepayment/foreclosure amount for loans taken by entities other than individuals, and payments are made through balance transfer to another bank or lender (even for individuals) went on foreclosure.
In case of mortgage, lenders charge around 3-4% of the foreclosure or prepayment amount as per their rules and guidelines, irrespective of the type of borrower. Additionally, prepayment is not allowed by lenders until a certain period (usually 6 months) from the inception of the mortgage.
- Property Insurance: Most lenders make it mandatory for the mortgaged property to be insured for at least the term of the mortgage. However, property insurance is not mandatory in case of home loans.
How do mortgage lending benefit us :
- In mortgage loan, you can take loan up to 80% of the value of the property. In some cases the loan amount reaches 85-90%.
- The repayment period of the mortgage loan is decided by the HFC.
- The repayment period of the mortgage loan is known as the term of the loan. You can repay the mortgage loan through EMI in a pre-determined period.
- The mortgage loan balance fluctuates daily, monthly and annually.
- Just as you make down payment for a home loan, the amount of down payment for a mortgage loan can also be 10-20%.
- If you wish, you can repay the mortgage loan ahead of time. Through prepayment, you can save interest by repaying the mortgage loan before the due date.
When Mortgage Loan is considered secured?
A Mortgage Loan in India is deemed secure when the borrower offers their property, as collateral. This agreement gives the lender a stake in the property enabling them to take possession of it if the borrower fails to make their payments. The property acts as a guarantee giving the lender confidence, in the lending agreement.
Our Process:
Our mortgage loan process starts with understanding your long-term financial goals. We then work with you to assess your funding needs and explore the best loan options from various lenders and investors, ensuring a smooth and successful financing experience.
Our first approach is to raise funds for the property without any collateral and based solely on the property details. The best possible options including Government Housing Scheme are explored after understanding the Property Detail & it’s Past history.
After appropriate assessment of Business, we are confident to bring on board Nationalised Banks, Private Banks, NBFC & other Financial Institutions for raising the desired funds either as unsecured or secured funds or Equity participation in any trading Business .
Our support extends beyond pre-fundraising to include post-fundraising compliance to guarantee accurate reporting and oversight by financial institutions.
Frequently Asked Questions (FAQs)
For Mortgage Loan Maximum tenure of 15 years (180 months) The limit will reduce each and every month with fixed amount so as the total principal is repaid in the tenure of the mortgage loan.
- You can use our Free online pre-qualification Service to connect with a loan officer and find out Estimate Of how much you can Take Loan before you start shopping for a Home.
- Once you have that amount, you may provide the loan officer more details and let them check your credit to confirm your income and assets.
- Before you make an offer on a home, your loan officer can assist you in obtaining a comprehensive written credit approval, contingent upon an appraisal.
We offer support services for Origination, Servicing, Accounting, Software Development, IT Support and Business Analytics. Loan setup, indexing, processing assistance, underwriting assistance, closing assistance, and post-close services are among our back-office origination support responsibilities. We also have experience working with AMCs and Title/Settlement companies for their back office requirements (Quality Control, Title Searches, Commitment Preparation, Closing Disclosures)
Although the list of outsourcing benefits is to long, some of the most Beneficial of them are given below in the list:-:
- Scalability just when you require it
- Reliable and measurable outcomes that are easy to control
- Streamlined and efficient operations for better customer experience
- Operational cost saving adding direct to your bottom-line
How long do mortgage loan approvals take? Depending on the lender, home loan approval could take up to 30 business days.The time frame for sanctioning a home loan could be significantly shortened if you meet all eligibility requirements and timely submit all necessary documentation.
A mortgage loan operates as a financial arrangement facilitating home ownership
The mortgage loan incurs interest, representing the cost of borrowing. This interest can be fixed, remaining constant over the loan period, or variable, subject to market fluctuations. The borrower then commits to making regular monthly payments, covering both the principal (the borrowed amount) and the accrued interest.
As payments are made, the borrower gradually builds equity in the property. Equity is the portion of the home’s value that the homeowner truly owns. The mortgage loan typically spans 15 to 30 years, during which the borrower diligently repays the loan. Ultimately, successful completion of the mortgage term results in full ownership of the property, marking the culmination of the mortgage loan process and the achievement of homeownership.
Considering a mortgage loan is a strategic move for several reasons:
Affordable Payments: By spreading the cost of the property over an extended period, mortgage loans make monthly payments more manageable. This affordability enables individuals and families to invest in a home while maintaining their financial stability.
Asset Appreciation: Real estate often appreciates over time, making homeownership an investment. With a mortgage, you can capitalize on potential property value increases, leading to long-term financial benefits.
Equity Building: As you make mortgage payments, you gradually build equity in your home.
Stable Housing Costs: Unlike renting, where monthly payments may increase at the landlord’s discretion, a fixed-rate mortgage offers stability. You lock in a consistent interest rate, providing predictability in housing costs over the life of the loan.
Credit Building: Successfully managing a mortgage loan contributes positively to your credit history. Timely payments and responsible financial behavior can enhance your credit score, opening doors to future financial opportunities.
Considering a mortgage loan is advisable when you are prepared to embark on the journey of homeownership but lack the immediate financial resources to purchase a property outright. This financial tool becomes particularly relevant when you wish to invest in a home and build equity over time.
In essence, obtaining a mortgage aligns with life milestones and financial goals, providing a structured path to homeownership and allowing you to enjoy the benefits of owning real estate while spreading the financial commitment over time.
The determination of interest rates in a mortgage is primarily in the hands of the lending institution providing the loan. While market conditions can influence the general interest rate environment, each lender retains the autonomy to set its own specific rates based on a variety of factors.
Fluctuations in the overall economy, coupled with factors like inflation rates and central bank policies, contribute to variations in a lender’s cost of funds, thereby impacting the interest rates extended to borrowers.
In essence, the determination of interest rates involves a nuanced evaluation of both the lender’s financial considerations and the borrower’s credit profile. This underscores the importance for borrowers to engage in a comparative assessment of offers from different lenders, facilitating the identification of the most advantageous interest rate tailored to their specific financial situation
Get in touch
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