Get the maximum value for your property with Vigneshwra Fin Capital. Our Loan Against Mortgage of Property (LAMP) facility helps you meet your financial needs with a speedy process and competitive rates. The trust and reputation of  Vigneshwara Fin Capital will ensure that your property is in safe hands too!

A mortgage loan is a secured financing option sanctioned against a property kept as collateral. Also known as a loan against property, this mode of financing provides you access to immediate funds with no end-use restrictions at lower interest rates and longer repayment tenures.

 

Things to Consider Before Applying for a Mortgage Loan

Consider the below points before you apply for a loan against property:

  1. Before approving a loan application, lenders usually track borrowers’ payment records and repayment capacity. So, if you have existing liabilities or other loans, it may lower your eligibility. Regarding this, some financial institutions also consider the number of dependents in a family to assess the repayment capacity.
  2. Mortgage loans are high-value loans and have longer tenures. Hence, you must conduct proper market research and compare various lenders before deciding. While comparing lenders, do not limit your research to the interest rate. Instead, consider other parameters such as processing fee, foreclosure charges, late payment penalty, loan to value ratio, and more.
  3. You may face rejection if your property papers are not clear or if there is a dispute on your property. 
  4. Remember that the LTV ratio for most financial institutions is usually restricted to 50-60%. 

You must also note that LAP does not provide any tax benefit. However, you can claim tax deductions if you utilise the funds for business purposes. If that is the case, you will be able to claim the benefits against interest paid and additional fees and charges.

What Are the Documents Required to Apply for a Mortgage Loan?

Here is the set of necessary documents that self-employed and salaried individuals need to submit when applying for a loan against property:

1. For Salaried Individuals:
  • Last 6 months’ salary slips
  • Previous 3 months’ bank account statements
  • Aadhaar card
  • PAN card
  • Proof of address
  • Property documents
  • IT returns
2. For Self-employed Individuals:
  • Previous 6 months’ bank account statements
  • Aadhaar card
  • PAN card
  • Proof of address
  • Property documents

Note that these documents are indicative, and you may be asked to submit additional documents if the need arises.

How to Apply for a Mortgage Loan?

Here are the steps to apply for a mortgage loan:

  • Step 1: Go to the website of your preferred lender and fill out the online application form.
  • Step 2: Enter your property and personal details.
  • Step 3: Enter your income and financial data to know the loan offer.
  • Step 4: Submit the application

Upon following these steps, a representative will get in touch with you regarding the document submission and further processing.

Features and Benefits of a Mortgage Loan

Here are the various features and benefits that a mortgage loan brings along:

1. Obtain Financing at a Lower Interest Rate

Since a LAP is secured financing, lenders usually charge a lower interest rate since there are negligible risk factors. So, you can meet all your personal or professional monetary requirements with this affordable loan option.

2. Continued Ownership of Property

When availing of a LAP, you do not lose your ownership status on your property. You can continue to use your property. In addition, you can mortgage different property types, such as commercial or residential.

3. Longer Repayment Tenure

The maximum tenure under a loan against property is generally longer. It makes a mortgage loan a lucrative option, as its extended repayment tenure leads to lower EMIs. 

4. Substantial Loan Amount

Lenders usually provide financing of up to 60-70% of your property’s market value, which you can use to meet all your big-ticket financial obligations.

 Vigneshwara fin capital to obtain home loans and loans against property at competitive interest rates and easy-to-meet eligibility.

 

Final Word

A mortgage loan is one of the best ways to address emergency cash crunches. From higher education, to an extravagant vacation, or a dream wedding, a loan against property is ideal for addressing various monetary requirements. Furthermore, its easy-to-meet eligibility parameters make the entire borrowing procedure hassle-free. 

 

 

Service benefits

A mortgage against property offers several benefits, including access to equity, lower interest rates, larger loan amounts, potential tax advantages, flexible repayment terms, lower credit requirements, debt consolidation opportunities, home improvement financing, investment possibilities, and the availability of emergency funds. However, it also carries the risk of losing your property if you fail to make payments, so careful consideration of the terms and your financial situation is essential.

  • Home Mortgage Rates
  • Real Estate Loan Expenses
  • Home Loan Eligibility Requirements
  • Loan Approval Guidelines

How does a loan against property benefit me?

A Loan Against Property (LAP) offers a versatile financing solution that can benefit you in several ways. It allows you to access a substantial amount of funds by using your property as collateral. This can help you meet various financial needs, such as funding a wedding, covering medical expenses, financing education, expanding your business, or even consolidating and refinancing existing loans. With Sundaram Finance's LAP facility, you have the flexibility to use the funds for a range of purposes, making it a convenient and cost-effective option for your financial requirements.

Does my property need to be insured?

Yes, most lenders require that your property be insured. This insurance, usually known as property insurance or home insurance, helps protect both you and the lender in case of unforeseen events like natural disasters or accidents. It's generally a prudent and responsible practice to have your property insured.

Can I foreclose my loan against the property?

Yes, you have the option to foreclose your loan against the property. However, it's important to be mindful that some financial institutions may impose a fee for the early closure of a mortgage loan. Before proceeding, make sure you are aware of the associated charges.

My property is co-owned by my relatives. Can I obtain a LAP?

Yes, you can often obtain a Loan Against Property (LAP) even if your property is co-owned by relatives. However, the terms and conditions may vary depending on the lender and the co-owners' consent. It's essential to communicate with your co-owners and work with a lender who is willing to consider such arrangements.