Mortgage loans are secured loans that an eligible applicant can avail by keeping an owned property as collateral to the financial institution. Lenders generally offer attractive mortgage loan interest rates which makes loan repayments affordable and convenient.
Mortgage loan interest rates for self-employed individuals ranges between 10.50% and 14.50%. As for salaried borrowers, the general property loan interest rate remains between 10.10% and 11.50%.
A borrower can avail up to Rs.3.5 crore as a mortgage loan with the repayment tenor extending up to 20 years.
Maximum loan amount a borrower is eligible to avail depends on the Loan to Value (LTV) ratio offered by the lender among other factors. With the best lenders, the LTV can range between 70 and 80% of the property’s market value.
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Here is a list of the rates and charges of Mortgage Loan .
|Mortgage Loan Interest Rates in India|
|Types of Fees on Property Loan||Charges Applicable|
|Loan Against Property Processing fees||Up to 1.5%|
|Property Loan statement charges||Rs. 50|
|LAP Interest and principal statement charges||NIL|
|Mortgage EMI bounce charges||Up to Rs.3,000/-|
|Penal interest||Up to 2% per month + applicable taxes|
|Mortgage origination fee||Up to Rs.4,999 (One time)|
|Mortgage Loan Foreclosure Charges in India|
|Borrower type: Interest type||Time (Months)||Foreclosure charges|
|Individual: Floating rate||>1||Nil|
|Non-individual: Floating rate||>1||4% + applicable taxes|
|All borrowers: Fixed rate||>1||4% + applicable taxes|
|Mortgage Loan Pre-Payment Charges in India|
|Borrower type: Interest type||Time (Months)||Part-prepayment charges|
|Individual: Floating rate||>1||Nil|
|Non-individual: Floating rate||>1||2% + applicable taxes|
|All borrowers: Fixed rate||>1||2% + applicable taxes|
Bajaj Finserv also brings you the fastest Loans against Property with disbursal of loan amount within 4 days.
Both self-employed and salaried individuals can avail a mortgage loan against an asset provided as collateral. Applicants need to meet minimum eligibility requirements and collateralise an asset to avail funding at favourable terms. The following steps elaborate on the complete mortgage loan process.
During disbursal, borrowers also need to submit the original documents of property ownership and sign the mortgage registry document. Processing of the latter can take up to 5 days. Bajaj Housing Finance Limited provides online application facility for all mortgage advances like Loan Against Property and ensures quick assistance for loan processing via an assigned representative.
Mortgage loan interest rate are typically low owing to their secured nature. As a result, borrowers enjoy comfortable repayment and low cost of borrowing. Several factors influence mortgage loan interest rates, read on to know more about these.
Although any immovable asset is eligible for a loan against property, its type determines the mortgage loan rates. For instance, lenders offer different interest rates for residential and commercial properties. Besides, the resale value of a property, its location, also influences this interest rate.
Usually, a property located in the heart of a city with modern amenities has higher resale value. Hence, on mortgaging that property, lenders can ascertain the recovery of the loan amount in case you default. Consequently, interest rates will be lower. Similarly, the property’s age also affects mortgage loan interest rates. The newer the property, lower the interest rates.
Lenders also consider a borrower’s credit profile before deciding mortgage interest rate. Below are some of the aspects that influence this rate.
Preferably, a credit score of 750 and above is deemed ideal to secure competitive interest rates from lenders. Similarly, the interest rate for a 55-year old salaried applicant would be more as he/she would retire from the job soon.
Moreover, lenders also check how the applicant handled previous debts, repaid on time or not, etc. Since all these factors directly influence credit score, it is important to adopt healthy financial habits to upkeep the score. It helps in availing the best mortgage loan interest rates available in market.
A mortgage loan is a high-value credit, and it is possible to avail up to 80% LTV against a property. However, high-value loans as risky on a lender’s part, as monthly instalments are higher in that case. Therefore, to compensate for the risk of borrowing, they may charge a high mortgage loan interest rate when loan amount is substantial. Hence, it is necessary to assess the exact credit requirement before applying to ensure competitive interest rates.
Note: Avoid pledging high-value assets to avail a small mortgage loan.
The tenor of loan also plays a crucial role in deciding mortgage loan interest rates. Usually, a mortgage loan accompanies a long tenor, and you can choose a term as per your repayment capacity. Nonetheless, on selecting a shorter tenor for high loan value, lenders may consider you a risky borrower. In such cases, the interest rate is usually higher.
Nonetheless, opting for a longer tenor can increase the total interest outgo in the long run. In this case, use an online loan against property EMI calculator to check the EMI outgo after entering tenor and interest rate proposed to you.
Besides these reasons, mortgage loan interest rates can also be influenced by market conditions if the rate type opted for is floating in nature.
There are different types of mortgage loans depending upon the nature of mortgage. Know them before you apply for one.
If identifying a particular mortgage type within these classifications is not possible, it is termed as an anomalous mortgage.
Lenders provide mortgage loans customised to suit diverse funding needs of borrowers. Features, benefits, and mortgage loan interest rates on such advances vary with the credit option and lender selected. They include –
Applicants must fulfil the following eligibility criteria to apply for a mortgage loan.
The maximum loan tenure for salaried applicants can go up to 20 years while self-employed individuals can choose repayment tenure of up to 18 years.
A borrower’s eligibility for a mortgage loan also depends on the property type, wherein LTV can vary as per the property mortgaged. Lenders usually offer the following LTV as per the below-listed property type –
Provide the following documents along with a duly filled application form when applying for a mortgage loan for hassle-free processing.
Borrowers must provide all documented proofs of their income from available sources to improve their chances to avail the loan at competitive mortgage loan interest rate.
Mortgage loan borrowers need to make a monthly repayment of the loan amount via EMIs. A mortgage loan EMI calculator is thus an online tool that allows individuals to assess their loan repayment capacity via quick Equated Monthly Instalments computation.
Provide only a few essential details to assess the EMI amount, like –
Based on these entries, the EMI calculator computes the fixed monthly liability that borrowers need to bear for the set loan amount and tenure. The calculator works on a simple formula for EMI computation –
E = P * r * (1+r)^n/((1+r)^n – 1)),
E equals the instalment amount, P stands for the loan principal, r represents the mortgage loan interest rate, and n represents the tenure value in months.
The EMI calculator is a handy tool that helps individuals determine a suitable loan amount and tenure that keeps monthly repayments affordable. Assess your EMI suitability in the following two steps, wherein the mortgage loan interest rate remains constant.
Once entered, adjust the loan amount and tenure value to arrive at a suitable EMI amount that fits your repayment capacity.
The mortgage loan EMI calculator also helps individuals compare various loan options from different financial institutions.
A reverse mortgage is a typical financing arrangement designed to fulfil the funding needs of individuals above 60 years of age. It provides financial security to senior citizens owning any residential property. The following few pointers outline the features of the financing facility –
The requirements one must meet when availing a reverse mortgage facility include –
While a reverse mortgage arrangement is a suitable funding option, individuals can also look for alternative financing facilities like mortgage loans. Bajaj Housing Finance Limited provides such advances at nominal Mortgage Loan interest rates and other attractive features.
The following outline the significant differences between a mortgage loan and a reverse mortgage facility.
Complete the application process for a mortgage loan in the following few steps.
Step 1 – Assess your loan requirements and select a suitable lender based on factors like mortgage loan interest rate, repayment flexibility, etc.
Step 2 – Fulfil the eligibility requirements and check affordability with a mortgage loan EMI calculator.
Step 3 – Select the ‘Apply Now’ option and fill up the application form available online with essential personal, employment, income and property details.
Step 4 – Next, a lender representative will get in touch with you to complete identity, address and property verification.
Step 5 – Once everything is in place, the loan amount is approved shortly. With Bajaj Housing Finance Limited, the time taken for loan approval is reduced to 48 hours*.
Step 6 – Complete the application process by handing over the required documents to a lender representative visiting you. Paperwork at this stage involves original property documents submission for mortgage approval and registry.
Borrowers can expect to receive a loan approval as per the lender’s policies. Bajaj Housing Finance Limited provides one of the fastest Mortgage Loan disbursals under 4 days.
Proceed to measure your loan eligibility as per the applicable mortgage loan interest rate and apply accordingly.
Follow these simple steps in order to reduce your mortgage loan rates:
In order to calculate mortgage loan interest rate, use the following formula:
EMI= [P x R x (1+R)/\N]/ [(1+R)/\N-1]
In this formula,
N- No. of monthly installments
R- Rate of interest
You can also calculate mortgage loan interest rate by mortgage loan calculator
Personal Loan and Mortgage Loan are two different types of advances Bajaj Finserv provides with different purposes, features and more. Difference between Personal Loan vs Mortgage Loan include –
Between a Personal Loan and Loan Against Property, the latter becomes a more convenient and affordable financing option if you have a property to be mortgaged. Apply for it with essential documents to enjoy quick approval.
The changes in mortgage loan interest rates will depend on internal benchmark of financial institutions.
Bajaj Finserv Loan Against Property is one of the best mortgage loans to avail as it comes with unique borrower-friendly features such as –
To avail these attractive features of Bajaj Finserv Mortgage Loan, apply with the online form.
When it comes to Home Loan vs Mortgage Loan, the most vital differences to consider include –
With this difference sorted, you can apply for a Loan Against Property with Bajaj Finserv as it comes with no end-use restriction.
Yes, this is possible if you have opt for floating interest rate. This depends on internal benchmark of financial institutions also. So changes in mortage loan interest rate will directly impact your interest rates too.
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