Know How Borrowers can Qualify For PNB Housing Mortgage Loan
A Mortgage loan is a source of financing that enables you to borrow money by committing an immovable asset as security to the creditor, such as a home or commercial estate. The lender holds the asset until the debt is paid off.
Do you need a mortgage loan? Are you thinking of applying for a Kotak Housing Mortgage Loan? Read on to learn various eligibility criteria essential for obtaining a loan against your property at Kotak Housing, including considerations for specialized options like reverse mortgage.
How to Qualify For A Kotak Housing Mortgage?
Here are some essential factors you must look upon before applying for a loan against property at Kotak housing
You must be a salaried employee with minimum pay of 25000 per month to avail Kotak Housing Mortgage Loan facility. If you are self-employed, your annual income must exceed 3,000,000 per annum.
Your age must not exceed 60 if you are a salaried employee. Moreover, if you are self-employed, you must be below 65 years of age to avail Kotak Housing mortgage loan.
- Insurance of the property:
For the protection and convenience of its clients, Kotak Housing recommends that you insure your home and loan repayments to avoid an unpleasant incident throughout the loan’s repayment period, including understanding any applicable taxes such as TDS on purchase of property.
If you do not have insurance against the mortgaged property, Kotak housing provides an option to get the property insured.
- Loan Amount:
The line of credit is set to 60% of the property’s market price. The percentage may reduce depending on the inspection of the authorized valuer or the customer’s repayment ability, whichever is lower.
Kotak Housing will assess loan eligibility based on factors such as income, age, education, and employment.
To determine loan qualification, the income of the borrower(s) and co-borrower(s) is usually clubbed.
You can quickly repay the loan in monthly installments, which include both principal and mortgage interest rates, over a total of 20 years. However, you can reduce the repayment tenure based on your needs.
- Credit Score:
You get a better interest rate on a mortgage loan with a strong credit score. If you need extra negotiating leverage, you may use other appealing offers depending on the credit rating that you’ve got from other companies. Lenders are unlikely to compromise on loan conditions if you have a poor credit score, and you won’t have any alternative credit offers or possibilities.
Read also: 30 lakh ka home loan kaise le
It means that if you develop a great credit score, your rate of interest on the loan reduces drastically. The difference can be up to 3 percent.
For example, if you have a credit score of 800 or above, Kotak housing charges interest rates of 7.75% to 8.25% for residential property. As your credit score reduces, this percentage increases.
Another instance is if you have a credit rating of just above 650, the mortgage interest rates charged on your loan will be from 10.15% to 10.65%.
Kotak Housing offers loans secured by mortgages on existing residential or commercial immovable assets. You may use the loan for company growth, overseas travel, personal needs like schooling, child marriage, family functions, medical bills, home furnishing, and the purchase of high-cost consumer durables, among other things.
The points given above will tell whether you qualify for a mortgage loan or not.