Mortgage Loan process

Before applying, it’s important to understand how a mortgage loan works, right from the application and verification stages to EMI repayment and refinancing opportunities. A clear understanding of the process helps borrowers plan better, estimate long-term costs, and ensure timely repayments for a smooth borrowing experience.

How does a mortgage loan work?

Getting a mortgage loan involves a few structured steps, from checking eligibility to receiving the final disbursement. Since the loan is secured against your property, lenders follow a detailed evaluation process to ensure smooth approval and repayment. Here’s a simplified breakdown:

1. Check your eligibility and repayment capacity

Start by reviewing your income, existing financial commitments, and credit score. Lenders assess these factors to determine whether you can comfortably manage EMIs. Since mortgage loans have a long tenor, it is important to ensure the instalments align with your monthly budget.

2. Submit your mortgage loan application

After choosing your lender, fill out the loan application online or offline. Provide accurate personal, financial, and employment details, and keep essential documents ready, such as identity proof, income proof, bank statements, and property papers.

3. Property evaluation and loan approval

Once your application is submitted, the lender verifies your documents and conducts a detailed assessment of your property. This includes checking the property title, market value, and legal status. The loan is sanctioned once both property and applicant eligibility checks are cleared.

4. Loan agreement and disbursement

After approval, the lender issues a loan agreement outlining all terms and conditions. Once you review and sign the agreement, the loan amount is disbursed to your bank account. You then begin repaying the loan through fixed monthly EMIs, where the interest component is higher in the initial months and gradually reduces as the principal portion increases.

What is the Mortgage loan process?

The mortgage loan process is simple and straightforward. Bajaj Finserv offers you a loan amount of up to Rs. 30 crore*, basis your eligibility. For that, you will be asked about information such as your name, contact number and PIN code apart from your employment type, loan type and the loan amount you are seeking. It may take around 24 hours* for a representative to get back to you and guide you further in the mortgage process - which will include property evaluation, document submission and verification.

Key components of mortgage loan

A mortgage loan has several important components that determine how the loan works, how much you pay, and what responsibilities you hold as a borrower. Here are the key elements:

• Loan Amount: The sanctioned amount you borrow against your property’s value and your financial eligibility.
• Collateral (Mortgaged Property): The residential or commercial property you pledge as security until the loan is fully repaid.
• Interest Rate: The cost of borrowing, charged by the lender. Mortgage loans usually have lower interest rates due to the presence of collateral.
• Loan Tenor: The repayment period, which can range from a few years up to 15-20 years, depending on the lender’s policy.
• Equated Monthly Instalments (EMIs): Fixed monthly payments that include both principal and interest. The interest portion is higher at the start and gradually reduces over time.
• Processing Fees and Charges: Lenders may charge fees for application processing, property valuation, documentation, and legal verification.
• Loan-to-Value (LTV) Ratio: The percentage of your property’s value that the lender is willing to finance. Higher-value properties may attract a lower LTV.
• Prepayment and Foreclosure Terms: Rules specifying how and when you can part-prepay or close the loan before the end of the tenor.
• Mortgage Agreement: A legal contract outlining terms, responsibilities, interest rates, charges, and consequences of default.

How long does it take to get a mortgage?

The time it takes to get a mortgage typically ranges from 30 to 45 days. This process involves several steps, including application submission, credit checks, property appraisal, and lender approval. After you submit your application, the lender will review your financial situation, verify your documents, and assess the property’s value. Once all checks are completed, the lender may issue a loan offer. Delays can occur depending on factors such as the lender's processing time, the complexity of your financial situation, or issues with the property appraisal. It's essential to stay in contact with your lender to ensure smooth processing.

How does a mortgage loan work?

A mortgage loan is a financial agreement where a borrower pledges property as collateral to secure a loan. The property serves as security, ensuring the lender's interest is protected. Borrowers are required to repay the loan through regular monthly instalments, which cover both the principal amount and interest.

One significant aspect of mortgage loans is their dependence on market conditions and prevailing interest rates. If interest rates decline, borrowers may choose to refinance their loan, replacing the existing agreement with a new one that offers better terms.

Another noteworthy feature of mortgage loans is the concept of reverse mortgages, designed for senior citizens. Reverse mortgages allow homeowners to access their home equity and convert it into periodic income, providing financial stability during retirement.

Thus, a mortgage loan offers a range of benefits, serving as both a borrowing tool and a versatile financial solution.

Other features of mortgage loans

Here’s a look at some of the other features and benefits of a Mortgage Loan

• Higher loan amount
  You can avail of loan up to Rs. 30 crore* at a lower interest rate.
• Longer repayment tenor
  The repayment tenor ranges from up to 15 years, for salaried and for self-employed customers
• Competitive interest rates
  Mortgage loan interest rates are lower than the interest rates of unsecured loans
• Minimal documents
  You only have to provide few basic documents to avail a mortgage loan. Bajaj Finserv processes the fastest Loans Against Property in just 72 hours* along with loan amount disbursals within 3 days*
• Simple eligibility criteria
  Bajaj Finserv offers a loan against property to self-employed and salaried individuals aged 25 years (18 years for non-financial property owners) to 85 years* (including non-financial property owners)
  * 85 years* of age or less at the time of loan maturity

Apply for a Bajaj Finserv Mortgage Loan and finance your needs today.

Also Read: How mortgage loan influences your CIBIL score?

How to speed up the mortgage process?

Here’s how you can fast-track your mortgage loan process:

• Get a pre-approved offer: Check if you qualify for a pre-approved mortgage loan before formally applying.
• Keep documents ready: Arrange income proof, tax returns, ID, and property papers in advance for quicker verification.
• Maintain a healthy credit score: A strong credit profile helps lenders approve your loan faster.
• Select a fast-processing lender: Choose lenders known for efficient evaluation and quick disbursals.
• Respond promptly: Share any additional information or documents requested by the lender without delay.
• Avoid major financial changes: Keep your finances stable during the application to prevent delays in approval.

Property loan based on the amount

You can apply for a property loan tailored to your financial needs, whether small or high-value. Choose loan amounts like:

Apply for a loan against property in different cities

Loan against property options are available across major Indian cities, offering competitive rates and quick approvals. Apply easily in:

Popular calculators for your Property Loan calculations

Use these online tools to estimate your monthly instalments, check your loan eligibility, and understand your property’s loan-to-value ratio before applying: