Simple Steps to Borrow Money Against your Flat by Mortgage Loan

Mortgage Loan

According to a report, there has been a 26% growth in the mortgage loan demand in the first quarter of 2021.

This growth can be attributed to the lower borrowing rates due to the RBI’s decision to maintain the repo rate at 4%.

Moreover, the availability of substantial credit and flexibility of spending make the credit form viable for big-ticket spending, such as medical bill payments, marriage expenses, travel, etc.

However, to gain the said benefits, individuals should have a clear understanding of what is a mortgage loan and the application process. This will help make an informed borrowing decision.

Steps to apply for a mortgage loan

Potential borrowers can follow the steps below to learn how to apply for a mortgage loan:

  1. Visit a preferred lending institution’s website and select mortgage loan from the product tab
  2. On the redirected page, fill in the application form with requisite details and submit
  3. A representative will get in touch with an applicant regarding the procedure
  4. Step 4:  An individual needs to submit valid documents after receiving a loan application approval.

If the submitted documents are valid, certain lending institutions disburse the amount against a mortgage loan within 48 hours.

In this regard, one can enquire about the list of documents needed to apply for a loan against property and streamline the process.

Some of the common papers that an applicant needs to submit are-

  • KYC papers
  • Salaried applicants have to submit the latest salary slip and bank account statements of three months
  • Address and identity proof
  • A self-employed applicant needs to submit bank account statement of six months
  • IT tax returns
  • Papers related to a collateral property

A lending institution may ask for additional documents depending on their regulations. Apart from documentation, individuals should also check the factors to consider while taking a loan against property.

This will help them streamline the loan application against their residential property.

What are factors to check before making a mortgage loan application?

Eligibility criteria

Potential loans against property borrowers must check the eligibility criteria set by lending institutions. Ideally, these requirements are simple and easy to fulfil.

A lender assesses a borrower’s repayment capability and reliability before approving the application. The common requirements include-

For salaried individuals –

  • An applicant must fall in the age bracket of 28 to 60 years
  • He/she should have Indian citizenship
  • Individuals should be working at a private, public or MNC for at least three years.

For self-employed applicants-

  • They should maintain a steady income flow
  • An applicant must fall in the age range of 25 to 70 years
  • Individuals should have Indian residency.

Apart from the mentioned factors, individuals should also maintain a 750+ CIBIL score and good repayment practice to increase their LAP eligibility.

Interest rate

Ideally, lending institutions levy affordable mortgage loan interest rates due to their secured nature. However, applicants should always compare the available options and opt for a lender levying simple servicing terms and no processing charges.

This will help them initiate better savings on disposable income and facilitate timely repayment habits. Moreover, potential borrowers can find lending institutions that extend customised offers and quality services.

For instance, many lenders extend pre-approved offers that make the loan application simpler. Such offers are levied on financial products like a home loan and LAP. You can check your pre-approved offer online by entering your name and contact number.


Choosing the right tenor is crucial as it influences the repayment structure. For instance, a long tenor will help reduce the EMIs but increase the interest outgo.

Comparatively, a short tenor will reduce the interest outgo and help make significant savings. It is recommended that individuals should evaluate their financial strength before choosing a tenor.

In this regard, they can use a mortgage loan calculator and understand the possible savings against the tenor.

Property type

Individuals should know that a residential property holds a significant value in a lender’s eye. A potential borrower can gain substantial credit against a property situated in a prime location and surrounded by amenities.

Individuals nearing their retirement owning such properties can easily avail a reverse mortgage loan and strengthen their finances for the future.

However, it is imperative to know that both residential and commercial properties should be devoid of any legal charges or issues for hassle-free loan approval.

Individuals planning to avail of a mortgage loan should check the steps mentioned above to streamline the process. They should also keep a tab on the factors that facilitate easy loan approval.

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