How to Apply for a Mortgage Loan?

Applying for a mortgage loan, also known as a Loan Against Property, requires careful planning. Whether you need funds for business expansion or housing requirements, understanding the steps involved can help you secure the loan smoothly.  

Benefits of a Mortgage Loan

• Substantial Loan Amount: You can avail of sizeable funds based on the property's market value and your eligibility, allowing you to access significant funds to meet your financial requirements. 
• Flexible Repayment Tenure: Mortgage loans offer extended repayment periods, enabling you to choose a tenure that aligns with your repayment capacity, thereby ensuring manageable EMIs. 
• Competitive Interest Rates: Being a secured loan, mortgage loans typically come with lower interest rates compared to unsecured loans, making them a cost-effective borrowing option. 
• Continued Property Ownership: Despite pledging the property as a collateral, you retain ownership and can continue to occupy or utilise the property during the loan tenure. 
• Diverse Utilisation: Funds availed of through a mortgage loan can be used for various purposes, including housing and business needs.  

Things to Consider before Applying for a Mortgage Loan

Before applying for a mortgage loan:  

• Evaluate Your Financial Stability: Assess your income, savings, and overall financial health  
• Check Your Repayment Capacity: Analyse your existing debts, monthly expenses, and expected EMIs to ensure you can manage repayments comfortably 
• Maintain a High Credit Score: A strong credit score enhances loan eligibility and helps secure better interest rates 
• Check Fees and Charges: Review all applicable costs, including processing fees, prepayment or foreclosure charges, late payment penalties, and any additional costs associated with the loan 

Eligibility Criteria for a Mortgage Loan

The eligibility criteria for a mortgage loan may vary depending on the lender's policies. Typically, self-employed and salaried applicants need to meet the following criteria: 

Self-Employed Applicants: 

• Must be an Indian resident aged between 23 and 70 years** at the time of loan maturity 
• Should have a minimum of 3 years of continuous business operations 
• Must be the legal owner of the mortgaged property 

Salaried Applicants: 

• Must be an Indian resident aged between 23 and 60 years** at the time of loan maturity 
• Should have a minimum of 3 years of work experience in a public or private sector company or an MNC 
• Must be the rightful owner of the property to be mortgaged 

**The upper age limit is considered as age at the time of loan maturity. Additionally, the upper age limit for applicants is subject to change, depending on the property profile. 

Documents Required to Apply for a Mortgage Loan 

The following is a list of documents*** required to apply for a mortgage loan:

 Self-Employed Applicants: 

• Aadhaar Card or Voter ID Card 
• Address proof such as Passport or Utility Bills 
• Mandatory documents such as PAN or Form 60 
• Profit & Loss (P&L) Statement and Income Tax Return (ITR) Certificate 
• Original documents of the mortgaged property 

Salaried Applicants: 

• Aadhaar Card or Voter ID Card 
• PAN or Form 60 (mandatory) 
• Salary slips for the last three months 
• Original documents of the property being mortgaged 

***This is an indicative list of documents. Additional documents may be required at the time of loan processing.  

Mistakes to Avoid When Applying for a Mortgage Loan 

Here are some common mistakes to avoid when applying for a mortgage loan:  

• Overlooking Total Loan Costs: Additional costs such as processing fees or penal charges can increase the overall loan cost. Always assess these before opting for a lender.  
• Not Assessing Credit Score: A low credit score can result in loan rejection or a higher interest rate, Check your credit score regularly and maintain a good credit score before applying.  
• Applying for Multiple Loans Simultaneously: Too many applications in a short period can negatively impact your credit score, thereby reducing your chances of loan approval. 

Steps to Apply for a Mortgage Loan

You can apply for a mortgage loan online or by visiting our nearest branch. To apply for a loan online:  

1. Visit the Loan Against Property application form and fill in your personal details, including your name, contact number, and employment type. 
2. Provide information about the loan type and your net income to help determine the most suitable loan offers based on your financial profile. 
3. Enter your PIN code along with the loan amount you wish to apply for. 
4. After verifying your OTP, proceed to the next step and complete the form by entering additional financial and property-related details. 
5. Finally, click ‘Submit’ to submit your application. 

After submitting the application, our representative will contact you within 24 hours* and walk you through the next steps.  

*Terms and conditions apply.