Overview Features & Benefits Eligibility Criteria Documentation Q & A

Overview

A Mortgage loan that is also know as Loan Against Property is a secured loan that allows you to avail funds by providing an immovable asset, such as a house or commercial property, as collateral to the lender. The lender keeps the asset until you repay the loan. A mortgage loan has no end-use restrictions. Use it to fund your child's overseas education, a wedding, home renovation, medical treatment, or more.

CreditsIn gives you the "Freedom to finance your dreams" by getting you a tailored mortgage solutions at attractive and affordable interest rates with customized repayment options to meet your specific needs.

Features & Benefits


1. You remain the legal owner of the property you pledge
2. Lower interest rate
3. Lower to no prepayment charges
4. Minimum documentation
5. Swift processing
6. Higher Loan to Value (LTV) on market value
7. Longer tenure
8. Lower EMI

Eligibility Criteria

Minimum Age limit 21 years
Maximum Age limit 65 years - 70 years
Employment Status Salaried or self-employed individual
Minimum Income Rs.3 lakh p.a.
Credit Score CIBIL score of 650 or more

Documentation

For Salaried Individuals:

A copy of any of the following as proof of residence:
* Ration Card
* Telephone Bill
* Electricity Bill
* Voter's ID Card

A copy of any of the following as proof of identity:


* Voter's ID Card
* Employer's Card
* Latest Bank Statement/Passbook from where you can show a salary/income being credited for the previous 6 months
* Salary slip for the previous 6 months showing all deductions
* Form 16 for the previous 2 years
* Copies of all the property documents of the concerned property to be pledged for the loan

For Self Employed Professionals/Individuals:

* Certified Financial Statement for the previous 3 years A copy of any of the following as proof of residence:
* Ration Card
* Telephone Bill
* Electricity Bill
* Voter's ID Card

A copy of any of the following as proof of identity:


* Voter's ID Card
* Employer's Card
* Latest Bank Statement/Passbook from where you can show a salary/income being credited for the previous 6 months
* Salary slip for the previous 6 months showing all deductions
* Copies of all the property documents of the concerned property to be pledged for the loan

Frequently Asked Questions

1) What is mortgage process in banking?
A mortgage loan is secured in nature. This means, you pledge a property and avail a loan against it. This property is the collateral that is held by the lender until you repay the loan fully. Repayment is made through equated monthly EMIs.

2) What is the advantage of a mortgage?
The greatest advantage of a mortgage loan is that you do not have to bequeath your ownership of the property and can get the loan at very low interest rates as opposed to most other loans.

3) What is mortgage and home loan?
A Home Loan is given to people either buying a house or constructing a house. On the other hand, a loan that is given against property is known as a Mortgage Loan or Loan Against Property (LAP) and has no end-use restrictions

4) Can I apply for a mortgage loan to finance other personal or business needs?
Yes. The sanctioned loan amount can be used for a wide range of financial needs, both personal and business.

5) How does the lending bank decide on the amount I can get as Mortgage/ loan against property?
The bank looks at your repayment capacity. For calculating the loan amount, your income, age, qualifications, number of dependents, spouse's income, assets, liabilities, stability and continuity of occupation and savings history are taken into consideration. However the eligibility of loan does not, generally, exceed 60 to 70 percent of the market value of the property.

6) What is the maximum loan I can get against my property?
The margin offered against your property differs from bank to bank, and also the type of property you're submitting as collateral. The average margin offered by banks and financial institutions is between 40% and 60%. Some banks also offer a 70% margin.

7) What types of property can be considered as security for a Mortgage loan?
Most banks require you to submit either residential (flat, house) or commercial property (building, building with land) as collateral. In some cases, you can also pledge your plot of land as security. However, this has to be non-agricultural land. You cannot use your industrial or agricultural property as security for a LAP.

8) How is the rate of interest on loan against property calculated?
Interest is calculated on daily reducing balance. Your monthly out-go (equated monthly installment - EMI) is much lower as compared to the interest on annual reducing balance.

9) What are the processing fees for such a loan?
Processing fee for loan against any property varies from bank to bank and is generally around 1 percent.

10) What is the tenure of the loan?
Loans against property has a maximum tenure of 15 years, subject to the condition it does not exceed your retirement age. This condition however can be flexible in certain cases

11) Can I foreclose my mortgage loan?
Yes, you can foreclose your mortgage loan. Please note that banks charge a certain amount as pre-closure fees. The amount varies from lender to lender, so ensure you're aware of all the charges before proceeding with foreclosure of your mortgage loan.

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