What is a Mortgage Loan?

A Mortgage Loan is a secured loan in which a borrower pledges an immovable property such as a residential, commercial, or industrial property as security to obtain funds from a bank or financial institution. The loan amount is determined based on the property’s market value and the borrower’s repayment capacity. Mortgage loans are commonly used for business expansion, working capital, education, medical needs, debt consolidation, or other long-term financial requirements.

 Benefits of Mortgage Loan

  • Higher Loan Amount: Get up to 60–70% of the property’s market value.

  • Lower Interest Rates: More affordable than unsecured loans due to property security.

  • Longer Repayment Tenure: Flexible repayment options up to 15–20 years.

  • Multi-Purpose Usage: Funds can be used for business or personal needs.

  • Retain Property Ownership: Continue using the property while it is mortgaged.

  • Affordable EMIs: Longer tenure results in lower monthly installments.

  • Tax Benefits: Interest paid may be tax-deductible as per applicable laws.

Eligibility Criteria for Mortgage Loan

Eligibility criteria may vary by lender, but generally include:

  • Applicant must be an Indian citizen

  • Age: 25 to 65 years

  • Applicant Type: Salaried individuals, self-employed, professionals, business owners

  • Income Stability: Regular and verifiable income source

  • Credit Score: Preferably 650 or above

  • Property Type: Residential / Commercial / Industrial property

  • Ownership: Applicant must be the legal owner with clear and marketable title

Documents Required for Mortgage Loan

KYC Documents

  • PAN Card

  • Aadhaar Card

  • Passport / Driving License / Voter ID

Income Documents

For Salaried Individuals:

  • Salary slips (last 3–6 months)

  • Bank statements (last 6 months)

  • Form 16 / Income Tax Returns

For Self-Employed / Business Owners:

  • Bank statements (last 6–12 months)

  • Income Tax Returns (last 2–3 years)

  • Profit & Loss Statement and Balance Sheet

Property Documents

  • Sale Deed / Title Deed

  • Approved Building Plan

  • Encumbrance Certificate

  • Property Tax Receipts

  • Occupancy / Completion Certificate (if applicable)

Other Documents

  • Passport-size photographs

  • Loan application form