Mortgage loans ? Your guide to apply for one today
Posted by Liity Jose on May 21st, 2018
Mortgage loans are perhaps the oldest types of loans out there. For ages, people have been mortgaging their homes or land to get a loan from their moneylenders. Now the practice is a bit more sophisticated, banks and NBFCs give out mortgage loans too, the process is official and organized.
Loan against property is preferred by many as this is best way to get a loan for a high amount. The mortgage loan eligibility criteria are also very lax as compared to other types of loans. A loan against property EMI calculator is also much simpler than other types of EMI calculators.
Mortgage loan interest rates are also quite different from other loan interest rates. You can get a higher amount for lower interest rates. Getting a mortgage loan is very simple as the eligibility criteria are too stringent. But still, here are some things you should always keep in mind when you’re applying for mortgage home loans in India.
- Always opt for a short tenure: Loan against property gets you a long tenure of almost 15 years or more to pay back. This one of the benefits of this type of mortgage loan but it also means that you pay more EMIs thereby paying back much more than you owe. So always opt for short tenure for your loan against property.
- Always insure large loans: When you take out a large loan like a loan against property, it’s always advisable to buy insurance so that in case of any unfortunate circumstances at least your family is doesn’t have to face the burden of loan repayment. Banks offer term insurance along with large loans so that they at least cover the loan amount in case something was to happen to you.
- Read and understand: All loans come with a lot of terms and conditions. Read all the documents attached to your loan agreement carefully and sign them only on understanding them thoroughly.
- Replace large loans: If you have too many high cost loans you can replace them with loan against property. A mortgage loan can be used to consolidate all your outstanding loans. It is a good idea to close your costly loans at the earliest.
- Make all payments on time: Being late with your EMIs can affect your credit score adversely. Make sure you pay all your EMIs in time to maintain a sound credit score.
