In India, mortgage loans are more popularly known as loans against property or property loans. Individuals who own property can pledge it as collateral or security and borrow funds against it. The interest rate on such loans is low for the risk for lenders is minimized by the presence of a high-value collateral. Further, borrowers have the flexibility to choose the loan tenor based on their repayment capacity and affordability. Loans against property also involve a substantial amount and so, lenders do not place any restrictions on how a borrower uses the funds availed of. These factors have been responsible for the growing popularity of mortgage loans and the demand for this loan option is only expected to continue to increase in the coming years. 

Let us now walk you through the mortgage loan application process in India so that you are well-equipped to navigate the entire process with complete ease. 

Mortgage Loan Application Process Explained

1. There are many lenders in the market that offer loans against property. Over the last few years, several new banks and NBFCs have entered this space, which has led to high competition among lenders to captivate more market share. This works in favour of borrowers, allowing them to easily negotiate for the most beneficial loan terms and conditions, especially if they have a good credit profile.
2. Before actually initiating the loan against the property application process, borrowers must reach out to more than a few lenders and negotiate for a good loan deal. They should then go with the lender with a good reputation and experience offering the most lucrative deal. 
3. The next step in the process is applying for the loan. Loan applicants can submit applications both online and offline. Here, you will need to disclose your income as well as all details related to the property you plan to pledge as collateral. So, keep all the required documents ready with you. 
4. Upon receiving your loan application, a representative of your lender will get in touch with you. They will verify all the information provided by you. During this step, your lender will also check your credit score to assess your creditworthiness. 
5. During the next step of the mortgage loan application, you will have to submit all the required documents. Generally, lenders ask for income, identity and address-proof documents. You will also be required to submit all documents of the property you plan to pledge as collateral. 
6. This step will be followed by the document verification phase. Your lender will hire legal experts to verify the authenticity of all the documents and information provided by you. 
7. If you pass the document verification stage, your lender will release the loan against the property sanction letter containing details of the loan offer that your lender wants to make to you. Send a signed copy of this letter to your lender. 
8. Your lender will now hire a legal and technical expert to check the property you plan to pledge as collateral. During this step, the expert will check the property, and its condition and decide the loan amount you are eligible for based on the fair market value of the property. They will also check all property papers to make sure the property has a clear title and is not mired in any kind of legal trouble.
9. Upon clearing this last stage of the process, your lender will release the final loan against the property agreement or offer and ask you to visit the office and sign the agreement. After you sign the loan agreement, your lender will release the loan money in your account.