Banks provide loan against mortgage of property on an attractive rate of interest. Businessmen, self employed professionals, salaried customers are all eligible to apply for the loan. It enables the borrower to apply for loan against a fixed asset.

Maximum Amount of Mortgage Loan Offered:

The maximum amount of loan depends on a number of factors, like customer's profile, his financial standing and repayment capacity, tenure of the loan. The repayment tenure increases or decreases with the amount of loan. Repayment is done through Equated Monthly Installments or EMI.

Interest Charged by Banks on Mortgage Loan:

Interest can be paid either on fixed or floating basis. Banks charge prime lending rate as their interest. Interest rate can be discounted for existing clients or in special cases according to the policies of the bank.

Process of Mortgage Loan Approval:

Customers can apply for mortgage loan by filling an online form. They can also visit the nearest branch of a particular bank. Normally, banks charge 1-2% of the actual loan amount as processing fee.

Documents Required for Approval of Mortgage Loan:

Salaried Individuals:

1. Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
2. Address Proof (Ration card Tel/elect. Bill/ / Passport copy)
3. Bank Statements(latest 6 months bank statement /passbook)
4. Latest salary slip or current dated salary certificate with latest Form 16
5. Proof of ownership of fixed asset being mortgaged

Self Employed Professionals and Businessmen:

1. Proof of Identity (Passport Copy/ Voters ID card/ Driving License).
2. Address Proof (Ration card Tel/electricity Bill/ Passport )
3. Bank Statements(latest 6 months bank statement /passbook)
4. Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs. certified by a CA
5. Qualification proof of the highest professional degree
6. Proof of continuation (Trade license /Establishment /Sales Tax certificate)
7. Other Mandatory Documents(Sole Proprietorship. Declaration. Or Certificate. Copy of Partnership Deed,Cert. Copy of MOA, AOA & Board resolution.)
8. Proof of ownership of fixed asset being mortgaged

List of Leading Banks offering Mortgage Loan:

* Terms and conditions may vary from bank to bank

---

Disclaimer : This is an information based website, meant for providing assistance to it's readers. The information has been gathered from a number of secondary sources, we do not hold any responsibility for mis-information or mis-communication.