Mortgage Loan: Meaning, Types, Features and Benefits

• The loan amount depends on the property's value and the borrower's repayment capacity.
• The property remains with the borrower, subject to the lender's mortgage terms.
• The loan can be used for various personal or business-related financial requirements.
• Repayment is made through regular EMIs over the selected tenure.

A mortgage loan is a secured borrowing arrangement in which a property is used as security for the loan. In India, the term mortgage loan is commonly used for a Loan Against Property, where an existing residential or commercial property is pledged to raise funds for eligible personal or business requirements.

The borrower generally continues to own and use the property while repaying the loan. However, the lender has a legal interest or security over the property until the loan is repaid according to the agreed terms.

A mortgage loan works by allowing the borrower to use the value of an eligible property as security for borrowing. The lender evaluates both the borrower and the property before deciding the loan amount and terms.

Here is the process:

Bajaj Finance offers a mortgage loan in the form of a loan against property, where an eligible residential or commercial property is mortgaged as security against the loan. Borrowers can use the funds for various personal or business-related financial requirements, subject to the applicable terms. The loan amount can go up to Rs. 15.50 crore, depending on factors such as property value, income and repayment capacity.

Features and benefits of loan against property

• Loan amount of up to Rs. 15.50 crore* -Manage your urgent financial needs with a sizeable loan amount of up to Rs. 15.50 crore sanctioned based on your mortgaged property.
• Low interest rates - Our loan against property comes with affordable interest rates starting from 7.5% to 14.25% (fixed or floating rate of interest) p.a.
• Disbursal in 72 hours* - Get money in your bank account within 72 hours*- of the approval & subject to receipt of all applicable documents and basis risk policy.
• Tenure of up to 15 years* - You can repay your loan amount conveniently with a repayment tenure ranging up to 15 years.
• Multiple end-use options - With no end-use restrictions, use the loan amount for an emergency or pay for wedding expenses, higher education or business expansion.

Whether you’re expanding your business or funding your child’s education, Bajaj Finance Loan Against Property can help you meet your financial needs while continuing to use your property. Get a loan of up to Rs. 15.50 Crore* against your property, with disbursal within 72 hours of approval, subject to applicable terms and conditions.

The documents required may vary depending on the lender and applicant profile. Below are the documents required for a Bajaj Finance Loan Against Property:

• Identity proof
• Address proof
• Income proof
• Bank account statements
• Property ownership documents
• Property tax receipts, where applicabl

Applicants should keep accurate and updated documents ready to support faster processing.

A loan against property is a type of mortgage loan that allows property owners to access funds by pledging an eligible residential or commercial property as collateral. The loan amount can be used to meet various financial requirements, such as business expansion, education, medical expenses, debt consolidation, or other planned needs, subject to the lender’s terms and conditions.

Step-by-step guide to applying for a loan against property with Bajaj Finance

1. Click on the ‘CHECK ELIGIBILITY’ button on the loan against property page.
2. Enter the 10-digit mobile number and verify it using the OTP.
3. Complete the application form by providing the required personal, business, employment, professional, and property details.
4. Enter the required loan amount and select one of the available loan variants: Flexi Term (Dropline) Loan, Flexi Hybrid Term Loan, or Term Loan.
5. Select a suitable repayment tenure ranging from 12 to 180 months and click on ‘PROCEED’.
6. Review the application details and submit the form to complete the application process, subject to applicable eligibility criteria and lender terms.

• Nationality: You must be an Indian citizen residing in India with property in a city we operate in.

• Age: Minimum age: 21 years (18 years for non-financial property owners)

          Maximum age: 85 years (including non-financial property owners)

  *Age of the individual applicant/ co-applicant at the time of loan maturity.

  *Higher age of co-applicant may be considered up to 95 years basis 2nd generation (legal heir) meeting age norms and to be taken as co-applicant on loan structure.

• The CIBIL Score is an important indicator of your creditworthiness. To get a loan against property, it is preferable to maintain a CIBIL Score of 650 or higher.
• Occupation: Salaried, self-employed professionals like doctors, and self-employed non-professionals are eligible to apply.

A mortgage loan is a secured borrowing option that allows individuals and businesses to access funds by pledging an eligible property as collateral. The loan amount, interest rate, and repayment tenure depend on the lender's policies and the borrower's financial profile. Before applying, compare the applicable mortgage loan interest rates, processing fees, repayment terms, and eligibility requirements. Use a loan against property EMI calculator to estimate the monthly instalment and plan the repayment schedule effectively.