How to Get a Mortgage Loan in India

1. How to Get a Mortgage Loan in India

2. A mortgage loan referred to as mortgage is a type of loan which Is used by property owners against their property for variety of purposes like buying a new property or to raise funds for any other purpose. In simple terms it means that the bank takes the ownership or possession of your property and gives you money in return for that property.

3. The value of that property is calculated on the banking standards or according to the current market price of the property which ever deemed fit. One important feature of mortgage loan is that the size of loan, maturity of the loan, interest rate on the loan, method of paying off the loan and many other circumstances can vary from country to country and from time to time.

4. How to Get Mortgage Loan in India Mortgage loans are basically of three types. First one is Fixed Rate Mortgage in which the rate of interest for paying the loan remains same throughout the entire period of payment of loan and the loan is divided into equal monthly installments. Second one is Adjustable Rate Mortgage in which the interest rate of the loan changes during the payment of the loan. Third one is Interest Only Loans in which you keep paying up the interest for the first few years and then after the set time period you have to pay both the principal amount as well as the interest. This type of loans are for people who do not have regular incomes or in other words whose incomes are irregular. Getting a mortgage loan in India is very easy and hassle free in India despite of all the paperwork involved. We are discussing the steps following which you can get a mortgage loan in India.

5. First of all you have to open a bank account in the bank from which you are going to take the mortgage loan as this is the first and foremost requirement. For mortgage loans you need to go through sweat breaking paperwork so for you to get hassle free loan we have compiled the documents you will need and explained briefly what is all about.

6. Documents that will be needed for the application include Proof of identity which may include your Passport, Driving License, Adhaar Card, Pan Card or any other document that backs up the claim of your identity. Proof of address which may include Utility Bills, Electricity Bills, Water Bills, Rental Agreement or any other utility bill that verifies your claim of your address. Proof of Your Regular Income like Bank Statement, Payment Receipts, Balance Sheet or almost anything that verifies your claim of getting a regular income.

7. Proof of Good Credit Documents about the property like deed of sale, allotments letter or any other document that verifies your claim that you are the authentic owner of the property. Some photographs of the property are also demanded by some banks. In addition to all the above documents some banks in India have special requirements like that any of your close relative might be living in the country to be as guarantor. As mortgage loans are different from the personal or any other type of loans so they have these special requirements to verify each and everything so that there is no discrepancy whatsoever. Mortgage loans are offered against residential and commercial property as well as any other property that you own in the country. The repayment policies of different banks are different and so are the interest rates charged by them on these loans.

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