Articles

The Best Loan Option for Unsalaried Person: Mortgage Loans

by Aman Khanna Finance

Mortgage Loans, as the name suggests, come against securities that serve as collateral for loans. However, the common perception for availing Mortgage Loan is fairly mistaken. Mainly because many people believe that such loans are availed for fulfilling residential or commercial building requirements.

But, Mortgage Loans can also be availed for:

  • Expansion of business.

  • Meeting capital expenses.

  • Consolidation of several high-priced debts into a single low priced loan.

Also, banks, in such cases, are reluctant to provide a loan-to-value ratio of over 50% against the property that is kept as a mortgage. In consequence, it is much better to opt for a Mortgage Loan from reputed NBFCs like Bajaj Finserv. Such lenders offer a higher loan-to-value ratio as compared to banks. Also, the Mortgage Loan interest rate offered by these lenders is better negotiable than that offered by banks.

Mortgage Loan

What makes Mortgage Loans better financing alternatives for un salaried persons?

  1. Availability of tax rebates

This is where salaried individuals stand at a considerable disadvantage. Business that are aiming for expansions, and/or improvement in their continuing ventures, get a tax rebate on interest amounts payable on the Mortgage Loan availed. Only, they’ll need to provide financers, with adequate proof of this prospective improvement or expansion. Once lenders have satisfactory proof of expansion, they can easily consider prospects for granting Mortgage Loans.

  1. Surrogate balance transfer facility

Non-salaried individuals qualify for yet another advantage over their salaried counterparts. Under this facility of surrogate balance transfer, applicants for a Mortgage Loan are saved the trouble of extensive documentation depending solely on their prior repayment records.

This facility, of transferring multiple cumbersome loans under a single lender usually involves a lot of hassle. But, in cases of non-salaried applicants, prospective lenders only need to have proof of the applicants’ credit performance in the past.

  1. Availability of refinancing options

Applicants can opt for refinancing their Mortgage Loans, while a current loan is ongoing in case of a hike in property values. Such an option availed on a Mortgage Loan proves to be highly advantageous when businesses plan for periodic expansions.

  1. Higher loan amount sanctioned

EMIs for personal loans can be pretty high. Moreover income capacities limit the amount of loan available. In case the backing asset has a high net worth, amount of credit accessible for a Mortgage Loan is much higher when compared to personal loans.

  1. Security in terms of property

The property kept as mortgage, secures the loan amount against repayment failure. Due to a lower risk involved for lenders, self-employed professionals get a lower Mortgage Loan Interest Rate, as compared to a personal loan. Consequently, lower interest rates also pave the way for a greater tenure of loan. Hence, borrowers can repay their debts in an organized manner, with well-spread installments over a considerable time period.

Such security also acts as a benefit in terms of negotiability concerning a Mortgage Loan interest rate.

In the presence of reliable lenders like Bajaj Finserv, borrowers have a wide variety of options to choose from while availing Mortgage Loans. Also, such lenders offer balance transfer facilities on extremely user-friendly terms. Apart from that, they also have online account management facilities that make it easier for borrowers to keep tabs on their repayment schedule. And with such loans having multifaceted uses, ease of access to them becomes imperative.


About Aman Khanna Innovator   Finance

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Joined APSense since, March 16th, 2017, From Delhi, India.

Created on Jun 13th 2018 08:41. Viewed 354 times.

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