3 min
05 October 2024
Mortgaging a flat can be a smart financial decision when you need immediate funds without selling your property. A flat mortgage allows you to use the value of your flat as collateral to secure a loan. Whether it is for medical emergencies, children's education, or business expansion, mortgaging your flat can provide you with the financial flexibility you need. Through Loan Against Property, such as those offered by Bajaj Finance, you can unlock the equity in your property while continuing to own it.
In this article, we will cover everything you need to know about flat mortgages — from how they work, key features, to eligibility criteria. By the end, you will have a comprehensive understanding of the process and will be able to make an informed decision about mortgaging your flat.
Interest rates on flat mortgages can vary based on several factors like the loan amount, repayment tenure, and the borrower’s credit score. Loan tenures can range from 5 to 20 years, allowing you to repay at your convenience through flexible EMIs.
Bajaj Finserv Loan Against Property provides attractive interest rates and easy repayment options, making it a preferred choice for those looking to mortgage their flats.
Interest rates: Flat mortgages offer lower interest rates compared to unsecured loans.
Repayment tenure: Loan tenures are flexible, usually extending up to 20 years.
Ownership: You retain ownership of the flat while the lender holds a legal claim until the loan is repaid.
Prepayment: Some lenders allow prepayment options, reducing the overall interest burden.
Age:Minimum age: 25 years (18 years for non-financial property owners)
Maximum age: 85 years (including non-financial property owners)
*Age of the individual applicant/ co-applicant at the time of loan maturity.
*Higher age of co-applicant may be considered up to 95 years basis 2nd generation (legal heir) meeting age norms and to be taken as co-applicant on loan structure.
CIBIL Score: A CIBIL Score of 700 or higher is ideal to get an approved loan against property.
Occupation: Salaried, self-employed professionals like doctors, and self-employed non-professionals are eligible to apply.
For more details, you can refer to Loan Against Property Eligibility.
Click on the 'APPLY' button on this page.
Enter your pin code and click Proceed.
Provide basic details like your full name and mobile number.
Now select the type of loan that you wish to apply for, your net monthly income, your area pin code, and the required loan amount.
Generate and submit your OTP to verify your phone number.
Enter further details like your property location, your current EMI amount/ monthly obligation, and your PAN number.
Click on the ‘SUBMIT’ button.
That is it! Your loan request is submitted. Our representative will connect with you and guide you through the next steps.
Mortgaging a flat is an effective way to access funds without selling your property. With competitive interest rates, flexible loan terms, and high loan amounts, Bajaj Finserv Loan Against Property provides an ideal solution for those seeking financial support. Ensure you are aware of the pros and cons, and always compare different lenders before making a final decision. The process may seem daunting at first, but with the right guidance, mortgaging your flat can be a smooth experience.
In this article, we will cover everything you need to know about flat mortgages — from how they work, key features, to eligibility criteria. By the end, you will have a comprehensive understanding of the process and will be able to make an informed decision about mortgaging your flat.
What is a Flat Mortgage?
A flat mortgage is a secured loan where a flat owner pledges their property as collateral to a financial institution to borrow a lump sum of money. The loan is disbursed based on the market value of the flat, and the lender retains a legal claim over the property until the loan is repaid in full. This type of loan is commonly used for large financial requirements like home renovation, medical treatment, or business expansion.How Does a Flat Mortgage Work?
When you apply for a flat mortgage, the lender will assess the market value of your flat to determine the loan amount you are eligible for. Typically, financial institutions offer a loan-to-value (LTV) ratio of up to 75% of the property’s market value. The lender then retains the right to sell the property if the borrower defaults on the loan.Interest rates on flat mortgages can vary based on several factors like the loan amount, repayment tenure, and the borrower’s credit score. Loan tenures can range from 5 to 20 years, allowing you to repay at your convenience through flexible EMIs.
Bajaj Finserv Loan Against Property provides attractive interest rates and easy repayment options, making it a preferred choice for those looking to mortgage their flats.
Key Features of a Flat Mortgage
Loan amount: The loan amount typically ranges from 50% to 75% of the property’s market value.Interest rates: Flat mortgages offer lower interest rates compared to unsecured loans.
Repayment tenure: Loan tenures are flexible, usually extending up to 20 years.
Ownership: You retain ownership of the flat while the lender holds a legal claim until the loan is repaid.
Prepayment: Some lenders allow prepayment options, reducing the overall interest burden.
Pros and Cons of Flat Mortgages
| Pros | Cons |
| Lower interest rates | Risk of losing the property if you default |
| Long repayment tenure | May require extensive documentation |
| Higher loan amounts | Processing fees can be high |
| Ownership retention | Property valuation impacts loan eligibility |
Flat Mortgage vs Fixed-Rate Mortgage: A Comparison
| Criteria | Flat Mortgage | Fixed-Rate Mortgage |
| Collateral | Yes, flat as collateral | Property-specific, typically home |
| Interest Rates | Varies, generally lower due to security | Fixed over the loan tenure |
| Loan Amount | Based on property’s market value | Based on property purchase price |
| Flexibility in Usage | Can be used for various purposes | Primarily for property purchase |
Eligibility Criteria for Flat Mortgages
Nationality: You must be an Indian citizen residing in India with property in a city we operate in.Age:Minimum age: 25 years (18 years for non-financial property owners)
Maximum age: 85 years (including non-financial property owners)
*Age of the individual applicant/ co-applicant at the time of loan maturity.
*Higher age of co-applicant may be considered up to 95 years basis 2nd generation (legal heir) meeting age norms and to be taken as co-applicant on loan structure.
CIBIL Score: A CIBIL Score of 700 or higher is ideal to get an approved loan against property.
Occupation: Salaried, self-employed professionals like doctors, and self-employed non-professionals are eligible to apply.
For more details, you can refer to Loan Against Property Eligibility.
How to Apply for a Flat Mortgage?
Step-by-step guide to applying for a loan against propertyClick on the 'APPLY' button on this page.
Enter your pin code and click Proceed.
Provide basic details like your full name and mobile number.
Now select the type of loan that you wish to apply for, your net monthly income, your area pin code, and the required loan amount.
Generate and submit your OTP to verify your phone number.
Enter further details like your property location, your current EMI amount/ monthly obligation, and your PAN number.
Click on the ‘SUBMIT’ button.
That is it! Your loan request is submitted. Our representative will connect with you and guide you through the next steps.
Mortgaging a flat is an effective way to access funds without selling your property. With competitive interest rates, flexible loan terms, and high loan amounts, Bajaj Finserv Loan Against Property provides an ideal solution for those seeking financial support. Ensure you are aware of the pros and cons, and always compare different lenders before making a final decision. The process may seem daunting at first, but with the right guidance, mortgaging your flat can be a smooth experience.
