Mortgage Loan: Introduction

Mortgage loan is a type of secured loan that you can avail by keeping an immovable asset as mortgage with the lender. The asset can be a residential/ commercial property or other immovable properties like heavy machinery.

This type of loan is secured on the borrower's property as per process which is called mortgage origination. Such loans are long-term advances with repayment tenors ranging to 18 years and interest rates much lower compared to unsecured advances. You can utilise the loan amount to meet diverse funding needs involving big-ticket expenditures.

Overseas education, a grand wedding, growing business needs, or unforeseen medical expenses – no matter what your need may be, finance them easily with a Bajaj Finserv Mortgage Loan. Bajaj Finserv now offers mortgage loans customised to the needs of salaried and self-employed individuals.

Purpose of mortgage loan

The primary purpose of a mortgage loan is to provide financial assistance to individuals or businesses for the purchase or refinancing of real estate properties. Here are the main purposes of a mortgage loan:

  1. Home purchase: One of the most common reasons people seek a mortgage loan is to buy a residential property, such as a house or an apartment. Since properties often have high price tags, most individuals cannot afford to pay the entire amount upfront. A mortgage loan allows them to borrow a significant portion of the property's value and pay it back in instalments over an extended period, usually several years.
  2. Property investment: Some individuals may use mortgage loans to invest in real estate for rental income or capital appreciation. By taking a mortgage, they can leverage their investment and potentially achieve higher returns over time.
  3. Business property purchase: Businesses often require office spaces, warehouses, or commercial properties for their operations. Mortgage loans help businesses acquire these properties without tying up significant capital in one purchase.
  4. Home improvement: Mortgage loans can also be used for home improvement projects, such as renovations or extensions. Borrowers can use the loan amount to upgrade their property, increasing its value and enhancing their living experience.
  5. Debt consolidation: In some cases, individuals may use a mortgage loan to consolidate high-interest debts, such as credit card debts or personal loans. By consolidating multiple debts into a single mortgage loan, borrowers can benefit from lower interest rates and more manageable monthly payments.
  6. Refinancing: Homeowners may opt for mortgage refinancing to take advantage of lower interest rates or to change the loan terms to suit their financial situation better. Refinancing can help reduce monthly payments or shorten the loan term.

Mortgage loan eligibility

The following mentioned are criteria to apply for mortgage loan:

For salaried applicants

  • Nationality: Resident of India, with a property in any of the locations where we operate
  • Minimum age: 25 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
  • Employment: Should be employed at any private, public or multinational organisation

For self- employed

  • Nationality: Resident of India, with a property in any of the locations where we operate
  • Minimum age: 25 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
  • Employment: Should be able to establish the required business vintage in the existing venture, along with a steady source of income

Features and benefits of mortgage loan

  • Reasonable rate of interest

    Reasonable rate of interest

    Starting from 9% to 14% per annum (Floating rate of Interest), Bajaj Finserv offers allows you to access a higher loan amount at affordable Mortgage Loan Interest Rate.

  • Money in account in 72* hours

    Money in account in 72* hours

    No more long waits for mortgage loan amounts with Bajaj Finserv. Find your sanction amount in your bank account in just 72* hours from approval.

  • High value funding

    High value funding

    Bajaj Finserv provides mortgage loan amounts as much as Rs. 10.50 Crore*, or higher to eligible candidates and even more, to boost your home buying journeys.

  • Digital monitoring

    Digital monitoring

    Now keep a close eye on all your mortgage loan developments and EMI schedules through the Bajaj Finserv online platform.

  • Long tenor stretch

    Long tenor stretch

    The Bajaj Finserv mortgage loan tenor stretches up to 15 years allowing borrowers a buffer period to plan out their EMI payments.

  • Low contact loans

    Low contact loans

    Experience a truly remote loan application from anywhere in India by applying online and getting an easy approval.

  • No prepayment and foreclosure charge

    No prepayment and foreclosure charge

    Bajaj Finserv allows you to foreclose the loan or make part-prepayments at no extra costs or prepayment penalty – making way for maximum savings.

  • Easy balance transfer with top-up loan

    Easy balance transfer with top-up loan

    Transfer your existing loan to Bajaj Finserv as part of our loan against property balance transfer facility and avail a top-up loan without additional documentation.

How to apply for mortgage loan

Mortgage loan is a reliable financial solution for those who require ample funding. These come with ample funding, nominal interest rates and lengthy tenors to facilitate comfortable repayment. Unlike other secured loans, mortgage loan in India have no spending restrictions. You can use the funds for any financial obligation or expense.

This offering is available to both salaried and self-employed individuals. To know more about the process of availing of a mortgage loan, read on.

  • Fill the application form
    The first step of the mortgage loan process is to fill the loan application form. Depending on the lender, you may have to do this at a branch or you may be able to fill the form online. Online provisions are generally a lot more convenient and easier to carry out.
    Generally, you will have to fill in the following information:
  1. Personal details
  2. Employment details
  3. Income information
  4. Loan requirements
  • Await loan processing
    After you submit the application form, the lender will assess your eligibility for the mortgage loan. Based on the eligibility, you will be offered terms or the lender may ask you to add a co-applicant to increase your eligibility.
  • Arrange all documents
    Upon completing initial loan processing, you must submit the required documentation. Here is a general list of documents required to process the loan.
  1. KYC
  2. Property documents
  3. Income documents
  • Await loan verification
    Once the documents are submitted, lenders will initiate a technical and legal verification. At this stage, a property evaluation will be conducted and the lender will check the authenticity of the property title. Based on these assessments, the lender will then confirm eligibility and proceed with approval.
    At the final step, the lender will issue a sanction letter and you will be able to authorise disbursal based on the approved terms. Do note, you will have to submit all the original property documents to the lender and these will be held until repayment is complete.

With tools like mortgage loan eligibility calculator and mortgage loan EMI calculator, you can manage your loan easily. Read the step-by-step process to know how to apply for mortgage loan.

FAQs about mortgage loan

What are the processing fees for mortgage loan?

One of the prominent NBFCs in India, Bajaj Finserv offers the most affordable interest rates and additional fees on loans against property. Borrowers can enjoy a repayment-friendly mortgage loan charges thanks to a transparent policy with no hidden fees.

Bajaj Finserv imposes nominal mortgage loan processing fees of up to 7%*. Apart from these, you need to meet the following charges:

  • Loan Against Property interest rates (for salaried borrowers): 9% to 14% per annum (Floating rate of Interest)*
  • Penal interest per month – up to 2% including the taxes applicable

Enjoy comparatively lower property loan rates with Bajaj Finserv and find the funds disbursed in 4 days of approval.

What is mortgage loan tenor?

Typically, a mortgage loan is a long-term credit advance with a flexible tenor ranging to 18 years. However, the maximum tenor depends on applicant’s profile, employment, age, etc.

For instance, self-employed applicants have the flexibility to select a loan tenor of up to 18 years. Note that borrowers have the option to prepay or part-prepay the loan amount against nominal charges which may vary from lender to lender. Post such payments, the borrower may choose to reduce the EMI amount or curtail the tenor keeping the EMIs constant.

How can one repay the mortgage loan ahead of schedule?

When you avail a loan against property or mortgage loan from Bajaj Finserv, you need to select a convenient repayment tenure. If you wonder what a mortgage loan repayment is, it means to pay off the borrowed principal along with the payable interest. Borrowers can easily make the repayments as manageable EMIs over a longer tenure of up to 18 years.

However, if you have excess funds in hand, you can opt for property loan repayment ahead of the tenure’s end. Bajaj Finserv offers both part-prepayment and foreclosure facilities at nominal to zero charges. Reduce the outstanding principal easily along with the EMI amount or the loan tenure.

Do you need to provide a collateral or security for mortgage loan?

The primary meaning of a mortgage loan stands as a loan disbursed against a property as collateral.

Avail a property loan up to Rs. 10.50 Crore* from Bajaj Finserv against any of the following properties.

  • Any type of industrial property
  • Apartments, house and other residential properties
  • Office, hotel, and other commercial properties

Another definition of what a loan against property, is that it is a secured loan with no end-usage restriction. The process of how to get a Property Loan is simple via an online application form.

Who can be co-applicants for mortgage loan?

Co-applicants are co-borrowers for loan against property. A co-owner of a specified property must always be a co-applicant for a loan against that residence. However, financial institutions entertain only specific relatives to co-apply for mortgage loan. Individuals under 18 years cannot be considered co-applicant.

Parents can co-apply for such a loan with their sons or unmarried daughters. Two brothers can also avail credits in such a manner. Similarly, spouses can opt for a joint home loan or loan against property. Nevertheless, some relatives, such as a brother-sister or two sisters, cannot avail joint loans.

Friends are also disqualified from applying for joint mortgage loan. Joint loans lead to hefty benefits, such as enhanced eligibility. Both the borrowers’ credit score and history are considered before loan processing occurs. Additionally, joint property loan also let the applicants avail tax deductions, enabling all the co-borrowers to claim tax benefits on principal repayment and interest payment.

What are the types of mortgage loans in India?

The different types of mortgage loans in India are listed below.

  • Loan against property
  • Home loan for house purchase or construction
  • Loan against property for home renovation
  • Loan against property for debt consolidation
  • Loan against shop
  • Loan against machinery
  • Loan against property for marriage
  • Loan against property for higher education
Is the insurance mandatory while taking mortgage loan?

The property on which you want to take mortgage loan should be comprehensively insured for an amount not less than the value of the property and it should cover all risks.

Do I have to pay any prepayment penalty while taking mortgage loan?

No, there is not prepayment penalty while taking mortgage loan from Bajaj Finserv. While many prepayment processes include provisions for customers to pay off up to a certain percentage of their mortgage without encountering a fee. Get in touch with your lender to get details the procedure and requirements.

What is the difference between a mortgage and a reverse mortgage?

Difference between a mortgage and a reverse mortgage loan are as follows:

  • A mortgage loan provides finances against the mortgage of an immovable asset. A reverse mortgage loan provides funds against a residential property’s equity build-up
  • The regular mortgage loan can be availed by mortgaging either a residential or a commercial property or machinery. But only a residential property, where the borrower resides, can be used for reverse mortgaging
  • Mortgage loans can be availed by all types of borrowers. Reverse mortgages are only meant for senior citizens
  • Mortgage loans are repayable over a decided tenor. But under reverse mortgages, no repayment is required until the demise of the borrower or nominee
  • Repayment liability under mortgage loans includes the principal plus interest. Under reverse mortgages, repayment liabilities can never exceed the reverse mortgaged property’s value
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