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Monday, February 22, 2021

Facing a Cash Crunch? Here is How a Mortgage Loan Can Help You

 


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.   

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