We often land in situations that require immediate funds. Some of us might not have a lump sum amount in our account to solve an immediate financial crisis. Luckily, people have the option to secure a loan against residential property in India. One can receive immediate funds with a loan against residential property. These funds can be used to solve the financial crisis, and the property will not be at risk. Unless the borrower defaults on the loan, the residential property is under no risk. Some of us might not be aware of the rules for loans against property. Read on to understand how to acquire a loan against your residential property.
What exactly is a loan against residential property?
A loan against residential property is a type of secured loan in India for individuals. It is also referred to as a mortgage loan by NBFCs and other lenders. Individuals can pledge residential property as collateral and secure funds with a lender. The lender will keep the original papers of the residential property throughout the repayment period. It does not mean you cannot use the residential property used as collateral. The property can be used continuously by the borrower. The lender has the right to acquire the residential property when the borrower defaults on the loan. Like a loan against residential property, one can also use commercial property to secure a loan. Fullerton India is the best choice for property loans in India at nominal interest rates.
Features & pros of a loan against residential property
Here are some key features and pros of a loan against residential property in India:
- Borrowers can get high LTV (Loan to Value) for residential properties with Fullerton India. One can get up to 70% of the residential property’s market value with a loan. If you have a good credit rating, you might get a loan against the residential property of 5 crores.
- A loan against residential property can get quickly approved in India. Since lenders have collateral, they aren’t worried about credit risk. However, lenders might take some time for credit analysis of unsecured loans. With Fullerton India, you can submit the mortgage loan application online and secure immediate funds.
- Those days are long gone when borrowers must visit several offices to get a loan. With the online application process, one can secure a loan against residential property with minimum paperwork. A few required documents for the mortgage loan can be uploaded online.
- Since mortgage loans are secured, they come with affordable interest rates. Before starting the mortgage loan process, compare the interest rates of different NBFCs online. For example, Fullerton India is well-known for offering low-interest rates on mortgage loans.
- Loans against residential properties come with longer repayment periods. One can choose a repayment tenure of 10 years for a mortgage loan and pay it gradually. Someone with a high monthly income can choose a shorter repayment period and save on interest charges. Borrowers are offered the flexibility to choose their repayment period for a mortgage loan.
- Mortgage loans also come with foreclosure benefits. If someone wants to repay the mortgage loan before time, they can do so by paying a small foreclosure charge.
How to apply for a loan against residential property online?
The steps to apply for a property loan with Fullerton India are as follows:
- Visit the official website and find the mortgage loan option.
- Provide some personal details to start the mortgage loan process.
- Submit the mortgage loan application online on the website of Fullerton India.
- You will be asked to upload a few documents for mortgage loan approval.
- After verifying the application details and the documents, the loan will be approved.
- Funds will be transferred to the borrower’s account, and the lender will need the original property papers as collateral.
Don’t forget to check the mortgage loan eligibility on Fullerton India’s website. You will also have to provide some documents like PAN card, Form 16, Aadhar card, and your account statement for mortgage loan approval.
When your mortgage loan application is about to be approved, representatives of Fullerton India will get in touch. The lender still needs to verify the correct market value of the property before giving the loan. Once the property and the documents are verified, your loan will be fully approved and you will receive instant funds. Submit the mortgage loan application online now!