2. Have legal and valid identification (resident ID card, household registration book or other valid identification) and proof of marital status;
3. Have good information records and willingness to repay;
4. Have a proper occupation and a stable source of income, and have the ability to repay the loan principal and interest on schedule;
The advantage of mortgage loan is that the interest rate is low and the collateral also has the right to use. However, mortgage loan also has unpredictable risks, so it also needs certain qualification requirements to handle mortgage loan.
What are the advantages and disadvantages of mortgage? The following is the knowledge sharing brought by money:
What are the benefits of mortgage?
1. The loan amount is relatively high.
Mortgaged assets are usually of relatively large value. Judging from the current situation in China, most enterprises use real estate as collateral, and a few enterprises also use fixed assets such as machinery and equipment as collateral. There are also very few enterprises that use the net assets of the whole enterprise as collateral.
This is because the value of mortgage assets must match the loan amount, and among all kinds of assets of enterprises, the investment in fixed assets such as houses and land or projects under construction is huge, which can meet the requirements of mortgage loans.
Other assets with relatively low value are generally not used as collateral assets. As far as the loan amount is concerned, the amount of mortgage loan is much higher than that of unsecured loan.
2. The loan interest rate is low.
With sufficient collateral, the borrower's interest rate is lower than that of unsecured loans, which reduces the borrower's cost.
3. During the mortgage period, the property right of the mortgaged assets still belongs to the borrower.
The mortgagor only gives the mortgagee (lender) the right to dispose of its assets if the loan cannot be repaid on time, so as to ensure the recovery of the loan. Therefore, during the mortgage period, the property owner can normally use all his assets.
What are the disadvantages of mortgage?
1. The loan threshold is high
Take housing mortgage as an example, not all houses can be mortgaged. Considering the realization of the house, the bank usually stipulates that the life of the mortgaged house should be about 25 years and the house area should be more than 50 square meters. Houses that have been purchased for less than five years, such as affordable housing, houses with small property rights, houses that cannot provide purchase contracts, and houses with outstanding loans, are all within the scope of restrictions.
2. The process is complicated and the cost is high.
Common mortgage and house evaluation need to pay a certain fee, such as evaluation fee, notary fee, mortgage registration fee or insurance fee, etc. The car loan needs to pay the car value evaluation fee. If you don't mortgage the car, you need to pay the GPS installation fee and rental fee, and you need to pay the handling fee. Car loans are suitable for borrowers with short-term capital needs.
3. Risk of foreclosure of collateral
When the borrower wants to repay, but is unable to repay, it is bound to face the risk of confiscation of collateral.