A Loan Against Property is a type of mortgage loan that the lender sanctions to you when you pledge a property or asset with them as security. While this can be a good option, it is important to know all the details before proceeding with their loan application. One such detail is the property profile, which includes ensuring that the property intended to be mortgaged is dispute-free and eligible for a loan from your lender.
To avoid any instances of fraud, you can check if a property already has a loan sanctioned against it. To check if a property is mortgaged already, you will need to access the CERSAI registry and search based on asset details.
Once you are certain that the property isn’t mortgaged, you can proceed to pledge it as an asset. It is important to know the different accepted property types in mortgage undertakings. Here are the types of property you can pledge:
- You can pledge a self-occupied residential property as security
- You can use a rented residential property as collateral (that you own)
- You can also pledge a commercial property that is being used or is vacant as security
Apart from these common mortgage property types, you can also pledge a property that you co-own with your relative. However, in such cases, the loan must be availed jointly, with all co-owners as co-applicants. Keep these pointers in mind before proceeding to check the valuation of your property, as your loan amount is determined based on your property’s value.
Also Read: What is the Mortgage Loan Process
To maximise your chances of being approved for a loan, you can pre-emptively check your mortgage loan eligibility. Bajaj Housing Finance allows you to use simple online tools to determine your loan eligibility. You can use the Loan-to-Value Calculator, by entering some basic details such as your income and the property value, to derive the total loan amount you are eligible to apply for.
Here are the steps involved:
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Choose your employment status
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Estimate the approximate value of the property you want to pledge on the calculator slider
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Choose the type of property you want to pledge
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Enter the loan tenor and interest rate
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Assess the eligible loan amount the calculator deduces from the information provided by you
The Bajaj Housing Finance Loan Against Property comes with attractive benefits such as quick loan disbursals, and minimal documentation. Not only this, but the documents also needed to process the loan are picked from your address. Apply today and get the loan disbursed in 72 hours*, pot verification and approval.
*Terms and conditions apply
Frequently Asked Questions
A mortgage loan is a specific type of loan that is secured by a property and used to finance a business or housing expenses. Unsecured loans, on the other hand, encompass various types of borrowing, may not involve collateral, and can be used for different purposes such as education, vehicles, or personal expenses.
In India, the most common type of mortgage loan is the Home Loan. Home loans are specifically designed to finance the purchase or construction of residential properties. They are long-term loans secured by the property being financed. The interest rates and terms of Home Loans can vary depending on factors such as the credit score and employment type of the borrower, loan amount, and prevailing market conditions.
In India, mortgage loans for home purchase are eligible for tax exemptions under certain conditions. The tax benefits associated with mortgage loans include deductions on both the interest paid and the principal repayment. Under Section 24(b) of the Income Tax Act, you can claim a deduction on the interest paid on your Home Loan. Additionally, the principal repayment towards your home loan is eligible for deduction under Section 80C of the Income Tax Act.
The formula is as follows:
M = P * (r * (1+r)^n) / ((1+r)^n - 1)
Where: M = Monthly mortgage payment, P = Principal loan amount, r = Monthly interest rate (annual interest rate divided by 12 and converted to decimal) and n = Number of monthly payments (loan tenure in months)
