Duration of investment (15-50 YEARS) 15 YEARS

₹ 33,98,632

What is Mortgage loan?

Mortgage loan is the loan issued by a bank to a borrower against any real estate pledged as a collateral or security. Mortgage loans are offered at different rates (fixed and floating) by different banks based on the tenure and class of the borrower.

What you can calculate using this calculator?

It is important to assess what the mortgage payment will be and how much you can afford to pay given that a large sum is borrowed. Calculating how much monthly EMIs you have to pay and the optimum amount of mortgage you can take will help keep track of your financial goals. The mortgage calculator thus comes as in as a handy tool that generates the EMI ( equated Monthly installment), Total amount payable and and the interest component based on the loan amount , tenure and rate of interest values entered.

Mortgage Loan Eligibility

In order to get a mortgage loan, you need to fulfill certain minimum eligibility conditions. The following factors are considered while determining your eligibility for a mortgage loan:

  • Your total annual income
  • Minimum age needs to be 21 years
  • If have any existing liabilities
  • Valuation of your property
  • Number of dependents you have
  • Your total work experience and experience in your current job
  • Financial documents
  • Both salaried and self-employed individuals are eligible to apply for mortgage loan

Documentation required for a Mortgage Loan

The documents required for a salaried and self-employed individual differ slightly. A salaried individual needs to submit the following documents:

  • A filled loan application form
  • A few passport size photographs
  • Proof of identity. As proof of identity you can submit voter card, driving license, PAN card, passport, employee ID card etc
  • Proof of address. Normally banks accept ration card, Aadhaar card, telephone bill, electricity bill, voter card and driving license as address proof
  • Your latest salary slips
  • Form 16 issued by your employer
  • Bank statements of last 6 months
  • And a processing fee cheque
    A self-employed needs to submit the following documents:
  • Application form
  • Recent passport size photograph
  • Identity proof
  • Proof of business existence
  • Proof of education qualifications
  • Certified financial statement for the last 3 years
  • Last 3 years income tax return certificate
  • Last 3 years profit and loss (P&L) statement
  • Last 6 months’ bank statement
  • Processing fee

Formula of Mortgage Calculator

Equated Monthly Installment (EMI) = P x R x (1+R)^N/((1+R)^N -1) Where, EMI : Equated Monthly Installment, P: Loan Amount R: Monthly Interest rate N: Number of monthly installment periods

Interest rates applicable for Loan against Property

Generally mortgage loans are charged a lower interest rate as compared to personal loans. As a result, the EMIs are also lower compared to that of personal loan. The interest charges varies according to the type of property. For instance, rate of interest on a residential property would be different than that of a commercial property. As of now, mortgage loan interest rates lie in the range of 12% to 15.75%. The rates could also differ based on whether you are salaried or self employed. In addition to this, a processing fee equal to 1-2% of the total loan amount is also charged by the banks

Benefits of taking loan against property

  • Mortgage loans have lower interest rates as compared to other loans and thus is a cheaper way of borrowing
  • The loan can be taken for a longer duration and can be conveniently paid of in smaller monthly installments
  • You can choose from different types of interest rates and payment options like , floating rates, fixed interest rates etc
  • Mortgage loan can be taken if you plan to buy your own house. Post repayment you get the sole ownership of the property. Thus it can help in asset creation without undue financial strain
  • You can get the loan for unreconstructed , fully constructed, residential and commercial properties at different interest rates
  • Mortgage loan can be sanctioned prior to selecting a property as well
  • Mortgage loan funds can be used for other financial needs as well
  • The documentation process is easy and you can get a mortgage loan from any bank in India