Mortgage loan is also an all utility and general purposeloan which is provided by the Banks by mortgaging the movable or immovable property in the name of the Bank. This is an easy way of getting faster loan against the value of a property that can be mortgaged.
Generally, individual(s) with steady source of income including persons engaged in agriculture and allied activities, who are 18 years of age are eligible for mortgage loan.
It is all utility purpose loan and the loan amount can be used for any purpose. The banks are not interested to know what the borrower is going to do with the loan amount.
Maximum Amount :
Maximum loan amount is calculated on the basis of two broad factors namely the price/value of the property to be mortgaged (usually 75% of the market value) and secondly on the repaying capability of the borrower. The repaying capacity of the borrower is arrived at by finding out the ratio of EMI/NMI.
EMI= Equated Monthly Instalment
NMI= Net Monthly Income
In case of mortgage loan Banks do no ask for any more collateral security as the mortgaged property itself plays a role of very good security as in general economic conditions the value of the gold will keep on rising.
Sometimes Banks can ask for additional Guarantors looking at the high value ticket loans.
Frequently Asked Questions :
Usually Banks are fine with self-occupied property in case of renting the property out it the Banks need to know the antecedents of the Lessee and the Borrower will have to seek permission before letting out the property.