Financial emergencies do not come with a warning. But, when they
come, they devastate the victim physically and emotionally. While it is true
that you might have emergency funds to handle such situations, they often fall
short of tackling the crisis.
A mortgage loan provides you with
no-frill funds that you can spend on fulfilling your needs. To be eligible to
avail a low-interest mortgage loan,
you need to pledge a freehold commercial or residential property.
Generally, there is no upper limit to the loan amount. However,
lenders usually approve a loan amount of up to 60% of the property's
price.
The Benefits of Availing a Mortgage Loan to Overcome Financial
Problems
A low-interest mortgage
loanoffers several benefits over other loans. Here are the top reasons
you should think about a mortgage loan
while dealing with an emergency.
- Flexible
Fund Usage - When you avail amortgage
loan, the lender evaluates your repayment capability and property
status, and approves the loan. The lender will never ask how you plan to
spend the amount. Hence, you can use it to fund any emergency expense,
such as hospitalisation, medical bills, transportation expenses, wedding,
house renovation, business debt consolidation, etc.
- High
Loan Amount - Unlike other loans, there is no limit to the amount you can
avail with a mortgage loan.
As the loan amount depends on property valuation, you can calculate the amount
using a mortgage loaneligibility
calculator and apply for the loan. To ensure quick approval of the loan,
you need to ensure that the loan amount does not cross 60% of the property
value.
- Relaxed
Eligibility Criteria - Unlike most other loans with complex eligibility
criteria, mortgage loan
provides a simple eligibility framework. You need to own a freehold
commercial or residential property and have a stable income source to be
eligible to receive funds from the lender.
- Extended
Loan Tenure - A high tenure of twenty (20) years ensure that whatever the
loan amount, the EMI will be feasible. Hence, a low-interest mortgage loan can reduce
the chances of default and add colours to your credit score.
- Attractive
Rates of Interest - Any salaried or self-employed professional in India
can avail a mortgage loan.
The mortgage
loaninterest
rate depends on the property type, borrower's credit score, income, and
age. Generally, the rates start from 9.50% and may go up to 11%.
- Convenient
Loan Application Process - You can apply for a mortgage loaneither online or offline. Online application is
quicker are more convenient than the offline mode. Lenders like PNB
Housing offer doorstep service, and you do not need to move an inch from
your house to avail a mortgage
loan.
- Flexible
Repayment Options - Repaying mortgage loan EMI is as simple as availing
the loan. You can pay through post-dated cheques or the Electronic
Clearing System (ECS).
Conclusion
Before applying for a mortgage
loan, you need to arrange a few documents in order. The documents
required for a mortgage loaninclude
a photograph, age, residence, and identity proof, income proof, Income Tax
Returns, bank statement, property papers, and processing fee cheque. You can
download the application form from the lender's website before submitting it
offline. Alternatively, you can submit the application online. It is
better if you enquire the rates from as many lenders as you can before applying
for the loan. A mortgage loan is
the best financial instrument when you require money urgently. Choose the right
lender to enjoy unparalleled benefits.
