Put your idle property to use and apply for a mortgage loan

A mortgage loan is a form of financing for your personal or business purposes. The special thing about a mortgage loan is the security you must provide in order to be able to use the loan. You can easily leverage the real estate you own to raise financing for a property you plan to buy or meet your business requirements. There are several circumstances where you need to raise outside financing. Banks and financial institutions offer you a variety of financing options from which to choose. With competitive interest rates and flexible repayment terms, you can use a loan for both personal and business purposes. You can use a mortgage loan for the expansion of your company, purchase of machines or installations, project financing, purchase of new real estate, expansion of the market.

Since it is a secured loan, it is essential to mortgage a home against this loan. You can mortgage your idle property and raise financing for it. It can be any real estate that you own and the loan amount will be backed by the mortgaged property, meaning you can raise a higher loan amount. The property can be a land, building, apartment, commercial property, factory, shop, farm, hotel, guest house, nursing home or industrial property. A mortgage loan can be adapted to your wishes and has various advantages, such as a lower interest rate, a higher loan amount and a longer term. Furthermore, business entities and self-employed persons can claim tax benefits on this.

A mortgage loan is for companies, traders, service providers, manufacturers and the self-employed. For a mortgage loan, the applicant must provide proof of income, proof of identity and proof of address. In addition, it is important to present documents of the property and also ensure that the property is insured against hazards such as fire. With joint ownership of a home, the co-owners become co-applicants for the loan. The value and age of the property are the main criteria for loan approval. Based on this and the market value of the property, the loan is sanctioned. Once the application has been processed, the bank or financial institution will appoint an appraiser who will determine the market value of the property and the loan amount will be sanctioned based on that. Usually 60% of the value of the property is sanctioned as loan amount. The term of this loan is longer due to its higher value and this allows the borrower to repay the same in regular installments. It comes with a flexible tenure of up to 180 months and a loan amount as high as Rs.15 crore.

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With a secured loan, it is important to pay the installments on time. Since the real estate is mortgaged to the Bank, the Bank can transfer ownership in case of regular default of installments. The Bank will also issue a notice for the payment and if the same defaults again, the Bank will have to auction the property and you could lose ownership of it. It is therefore very important to ensure that the repayments are made on time. It also offers the option of paying off the loan early before the repayment schedule expires. This option saves you on the interest payment and also gives you a positive credit score. Individuals with a satisfactory or positive credit score can easily get their loan processed.