Property or Mortgage Loan

Banks sanction property loans against mortgage of an immovable property.

Purpose

Property loan is an all purpose loan, i.e., the loan can be obtained for any legitimate purpose whatsoever like meeting expenses of a Marriage ceremony, a sudden medical emergency, business requirements, buying a property or any other asset etc. The rate of interest, terms and conditions and charges for the loan vary from bank to bank.

Eligibility

A regular source of income to service the loan and ownership of an immovable property which can be mortgaged to the bank as security for the loan.

Amount of Loan

The amount of loan is linked to your repayment capacity and the market value of the property mortgaged to the bank. Banks generally ask for 50-60% as margin on the value of property to be mortgaged.

Rate of Interest

Varies from Bank to bank

Repayment

60 to 120 months

Processing and Other Charges

Incidence and amount of Processing and other charges vary from bank to bank.

It is suggested that before finalising your deal for property or mortgage loan with a bank, you make detailed enquiries from various banks regarding the rate of interest, processing charges, prepayment charges and other charges. An informed decision will result in substantial saving in the cost of the loan.

Disclaimer

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The visitors may visit the web site of Income Tax Department for resolving their doubts or for clarifications.