The term 'mortgage' is one of the most frequently used terms in the lending industry.
People living in India love to apply for mortgage loans as they provide not only the lowest interest rates but also lenient eligibility criteria, simple documentation, and a high loan term.
Here are the things you may keep in mind to get the most of a mortgage loan in India.
Know the Limitations of End-Use
As a fact, mortgage loans in India are reasonably flexible, as you may use the funds for any need. Hence, you may pay hospital bills, buy a property, purchase a car, consolidate business debt, etc. You can also get tax deductions if you use the money for business purposes. However, you cannot use the funds for speculative purposes like stock trading or mutual fund investments.
Inquire About the Income Threshold
The approval of a mortgage loan in India depends on the credit score and income level of the borrower. The lender looks at the borrower's income level to estimate their repayment capability. You can only get the lowest mortgage loan interest rates if your credit score is high and your monthly income is above the minimum income set by the lender. Hence, you must inquire about the eligibility before availing a mortgage loan in India.
Keep the Documents Ready
To avail a mortgage loan in India, you need to submit documents like PAN card, Aadhar card, income proof, Profit and Loss statement (for self-employed), bank account statement, and property documents. The property needs to be in the name of the person applying for the loan. Also, the property should be dispute-free.
Conclusion
Getting a mortgage loan with the lowest interest rate can be very easy when you keep a few tips in mind. Remember that while the lowest interest rate of a mortgage loan can catch your attention, it is ultimately the loan terms which determine your satisfaction level.
