Important Details About Loan Against Residential Property |
Posted: June 19, 2018 |
You have been thinking from where to arrange to money if your child wants to study abroad, or you want money for your children marriage or any other urgency in the business which requires you to arrange money urgently. At this time you start thinking about the sources from where you can arrange the money. Finally, you come to the decision of taking a loan; nothing can be as simple as taking a loan against residential property. If you have finalized your decision for taking the loan then you should also consult other types of loans with the mortgage loan in India as well. Definition of Loan against Property:- Exactly as the name implies, the loan against property is the loan which is given against the mortgage of the property. The loan is offered on the basis of the property’s market value which is roughly 40-60 percent. This type of loan is a type of secured loan, where the loan taker gives the property as the security. Purposes for taking the loan against property:- Loan against property can be taken for the below-mentioned purposes:- 1. Expansion of the enterprise 2. Sending your children abroad for studies. 3. The marriage of your children. 4. Going for a vacation. 5. Medical treatments Which properties can be mortgaged for the loan? You can take a loan against the property which can be a house or even a piece of land. It can be rented or even self-occupied property. Eligibility Criteria for getting a loan against property:- Mostly the eligibility differs from bank to bank, but still, most of the banks follow the following eligibility criteria for offering a loan against property:- 1. Value for the property you desire to mortgage 2. Your debt, obligations, and income 3. Your earlier record of paying the interest and the loan. Normal interest rates and the duration of the repayment offered for the loan against property Interest rate- 12- 16 percent Duration- 15 years Documents required for applying for the loan against property A. Self Employed Professionals:-
B. Self Employed Entrepreneurs
C. Salaried Professionals
Loan Against property is the best way to raise funds to fulfill your requirements. The only issue or you can say the drawback is that if by any chance the borrower fails to pay the loan amount then the bank or the institutions from where the loan is taken have the legal rights to take the possession of the mortgaged property. So you have to be very vigilant about paying the interest on time if you want to keep your property secured.
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