Loan Against Property

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Loan Against Property: Your companion during financial contingencies.

Life often throws financial problems towards us and we have to overcome it with financial solutions. You need emergency funds and look in the market for capital. Most people feel personal loans are unsecured and it’s a risk-free option as you don't have to pledge for anything to avail finance. However, they start feeling the pinch in their pockets when they have to pay exorbitant interest rates within a lesser tenure.

The finances on a toss as they have to pay more money towards. An ideal solution to all your financial worries would be taking a Loan against Property. It’s an all-purpose loan that caters to your financial needs for whatever life throws up at you. LAPs are offered by leading private players and government banks in India, to borrowers at competitively low-interest rates deals. It’s a secured form of loan wherein you have a pledged for your residential property as collateral. Employees, professionals and self-employed individuals who are IT payers and NRIs who own residential property or any kind of plot land in his/her own name can avail LAP.

Since you pledge a property it comes under secured category and lenders offer attractive interest rates. The repayment tenure for a loan against property is around 10-15 years and comes with flexible interest rate types such as fixed or floating rates. It can help you meet a variety of purpose such as daughter's marriage, business expansion, medical needs, funding for education, etc. Banks, Non-banking finance companies and credit unions maintain a loan to Value Ratio (LTV) and sanction around 65-75% of the property value. Some lenders might offer higher or lower LTV ratios.

Usually, the principal loan amount and the interest rate applicable is based on your income source, job stability, additional income like spouse/parent's income, your age, age of the property, property's current and future anticipated value, existing debts and last but not the least your credit score. A good income, job stability, and credit score will help you to negotiate for low-interest rate deals.

With the online facilities, you can apply for LAP right from the cozy corners of your home or offices. In fact, some lenders have introduced app wherein you can compare loan of leading finance providers, apply through the app, get the money disbursed to your account as well as start making the repayments via the app as well. App-driven technology helps you fulfill your dream goals with just a few clicks on your smartphones, thereby saving your time and energy.

LAP is processed quickly compared to home loans and the paperwork is limited. Since the property is pledged the lenders are sure of the borrower's repaying capacity. Experts say choose a monthly installment that will not exceed 30% of your household expenses. Some commonly required documents to be scanned and uploaded while making an application online would be: Identity proof of the borrower, Address proof, the salary slips, Form-16 for salaried people, bank statements, Income tax returns, certified financial statements if it’s a self-employed person and the property documents.

Don’t let financial obstacles stop you fulfilling your dream goals. Apply for Loan Against Property online, now!

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Loan Against Property: The best way to fund your dream goals

Your sister's wedding date has been fixed, you have planned a budget, picked on the guest list, however, all of a sudden there strikes a medical emergency in your home and you're short of 25 lakhs to fund the wedding as the money was diverted towards the surgery. You seek help from friends or family and only get around 12 lakhs and a personal loan can qualify up to Rs 9 lakhs. Still, you're short of a hefty amount of around 13 lakhs. Well, you might have ran out of monetary options, however, you remember there is a property inherited by your forefathers. Don't worry instead of taking a grave step of selling it you can opt for LAP (Loan against Property).

Well, in today's time leading banks and finance companies are offering loan against property at low-interest rates and flexible repayment options. LAP is one type of secured loan wherein you can apply for the money keeping your property mortgaged to the lenders. They offer you attractive interest rates compared to the personal loans and have certain eligibility factors for it. There are several advantages of LAP such as low-cost interest rates, ample tenure of around 10-15 years for repayment if your property value increases you can opt for a top-up loan, etc.

Compared to home loans, loan against property are offered to already own property so chances are if the property value is high you will get higher loan amount. You may opt for LAP to fulfill several purposes such as debt consolidation, wedding, education, foreign trip, build a home at your native, etc. The lenders will not inquire about how you're going to use the funds. The only drawback is you cannot avail tax benefits in loan against property.

Ideally, lenders sanction a loan amount of around 60-70% of the property value. However, some factors that lenders consider to for loan would be your income source, risk appetite, age, property value, debts, and their monthly installment and credit score. When you have stable income source and good credit score it puts you in a comfortable position to bargain for low-interest rate deals.

They will also check the repayment patterns and the ability to repay the debt. While availing LAP there would be fewer charges like processing fees, etc. so check thoroughly with your lenders. There are aggregator sites online wherein you can compare the loan amount and interest rate of leading private finance companies across India under a single roof. There won't be any pre-closure charges if you opt for floating interest rates, but if it’s a fixed interest rate then you will have to pay a certain amount. It’s important to note the longer the tenure you choose higher would be interest rate you pay, and lesser the tenure, less is the interest rate you shell out of your pockets.

It’s always a must to give a thorough read on the terms and condition before you sign on the dotted line. Loan against Property is your best companion during your rainy days of financial needs. Compare quotes and apply for LAP online, now!

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5 big benefits of a loan against property.

A loan against property is indeed a great way to conjure up funds when you need them. However, there are numerous other finance options out there that would serve the same purpose, so why choose a LAP over them? Well, a mortgage loan comes with 5 big benefits that this article will explain so you can choose correctly when in the market for a financial aid. 1. Lower interest rates. Interest rates are among the more important factors to consider when comparing your options. Higher rates mean higher EMI amounts resulting in more money escaping your pockets. On the other hand, a lower rate amounts to lower monthly payments and more peace of mind. In this regard, a loan against property holds a huge advantage over finance solutions. Take for example a personal loan that will invite rates between 16 and 22 percent! Or, if you are thinking of financing your further education with an education loan, that will require you to pay anything between 10 and 16 percent per annum.

In contrast to both these financial solutions, a LAP comes with rates usually ranging between 9.55% and 11.70%, which is lower than both a personal loan and an education loan. 2. Get more funds with a loan against property. If you are comparing loan options, it’s important to evaluate the loan amounts on offer. Personal loans usually do not provide more than 10 lakhs. A LAP, on the other hand, should fetch you up to 60 percent of your property’s value. Now, with property prices soaring, this should translate into a substantial amount of money and should cover most financial needs with ease. 3. Tenures. Your loan should put your mind at ease, not give you sleepless nights each month. The tenure of the loan plays an important role in deciding this. Shorter tenures equal much larger EMI payments and a repayment process that’s extremely taxing. In this regard, personal loan comes with tenures that don’t usually exceed 120 months. In comparison to this, a LAP should help you breathe easier with tenures of up to 15 or 20 years. The extra time will ensure you never have to stress about large EMI amounts.

4. Low or no prepayment charges.

Generally speaking, a loan against property does not invite prepayment charges. This allows you to repay the loan in ways you are comfortable with and without worrying about penalties for closing the loan before the due date. In some rare cases, such as when you opt for fixed rates or have a firm as a co-applicant, prepayment charges may be levied but they are very marginal.

5. Quick and easy approvals.

In comparison to other loans, a LAP is relatively easier to avail. This is because the loan is provided to you against your property. This makes it a very secure loan and a lower risk for the lender.

These 5 big benefits of a loan against property make it an ideal way to arrange for funds when you are in a tight spot financially. We hope this article has given you a better perspective of these loans. Good luck and all the best!

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Opting for a loan against property? Here are 5 things to keep in mind before doing so.

A loan against property is the perfect way to arrange funds to meet any of your urgent needs. It gives you a sizeable loan amount that is normally more than enough to cover things like your child’s further education aspirations, their marriages; the amount could also be used to expand, save or start a new business or to cover any medical emergencies. However, before you opt for such a financial aid, remember to give some thought to the following aspects. 1. LTV ratio of a loan against property.

LTV stands for Loan to Value Ratio. It is simply the amount of loan a lender is willing to provide you based on the value of your property. You should keep in mind the LTV of the loan before opting for one so you understand the amount of funding you stand to receive ongoing in for this attractive financial aid. Most lenders provide up to 60% of your property’s value as the loan amount. 2. The processing fee for the loan. Just like a home loan, a loan against property also requires you to pay a processing fee. And just like a home loan, the processing fee for a loan against your property is generally around 1 or 2 percent of the loan amount. This can work out to be quite a substantial amount and therefore it’s always important to go over the processing fee levied by different lenders to see which one will cost you less.

3. Property eligible and the conditions. You can put up both residential and commercial properties up for a mortgage. Again, these properties can be self-occupied or ones that you’ve rented out. However, the LTV can change with different types of property. For example, your own home will get you a better LTV in comparison to a home that you’ve rented to a tenant. The logic behind is that you’re more likely to repay a loan that’s taken on your place of residence than the one you do not live in and that’s just getting you a source of income. Moreover, the property should be in your name. If it has any co-owners, they should give you consent to apply for the loan. There should be no disputes on the property and all the paperwork should be on hand when demanded. 4. Keep insurance in mind. Debt is a difficult thing to handle, even more so for your loved ones to do so in your absence. Therefore, to ensure the burden of debt doesn’t fall onto the shoulders of your family members, it’s worth to get a simple term insurance plan that will cost a very minimal amount but will help your family members pay off the debt, even without you or your income. 5. Remember to read the fine print and consult a financial expert. It’s of utmost importance that you go through and understand the legal terms and conditions of a loan against property. For most of us, it’s hard to completely understand the intricacies and if this is the case with you, it’s worth your time and money to get your doubts cleared with a financial expert before you sign along the dotted line.

Keep these 5 points in mind and you should end-up with a smooth loan against property experience. Good luck and all the best!

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7 features of loan against property.

Whatever you’re personal or business needs may be, loan against property helps you meet them easily. You can apply for this loan by pledging your property as collateral. You can pledge both your commercial (shops, offices, etc) as well as self-occupied or rented residential property. You can get a loan amount which is up to 60% of your property’s worth.

This type of loan is, therefore, an apt solution to help you fulfill all your financial needs immediately. It is better to know something before you go for it. Here are 7 features that the loan against property provided by some of the best lenders has:

1.     Suitable for all your needs:

When you pledge your property to get a loan, you will be delighted to know that the amount will be worth 60 to 70% of its market value. This means the amount you will get will be enough to cater to the most expensive of life’s events such as marriage, abroad studies, medical treatments, etc. And the interest rates are always competitive so you can pay back the huge sum easily.

2.     Every need fulfilled:

You can use the home loan against property to fulfill any of your personal or business needs. The banks accept commercial and residential properties as the mortgage. The property can be self-occupied or rented.

3.     Easy repayments:

These types of home loans come with attractive interest rates. Low-interest rates mean low EMIs. And low EMIs mean easy and smooth repayment of the loan amount every month.

4.     Transparent process:

Unlike other loans, loan against property doesn’t come with any hidden fees. Whatever may be the charges involved will be told to you up front right at the time of application. This will save you from the rude shock of discovering that you are being charged for something after you have applied for the loan, and result in your financial plans going haywire.

5.     Speedy and efficient:

Mostly, all loan providers speed up the loan approval process so you can meet your needs without a delay. Most offer doorstep service and validate and approve your loan application quickly.

6.     Advantages of being self-employed:

Most top lenders offer special loan benefits for people who are self-employed. They are offered tailor-made solutions and options along with specially designed programmes.

7.     Makes debts easy:

The loan providers in the market today are trying to come up with such lucrative schemes and solutions to attract people who are in dire need of funds to meet their financial contingencies. They make sure the borrower doesn’t feel burdened by the debt taken by offering mentioned benefits.

Do thorough research to find out whether a loan provider offers all these benefits and is suitable for your needs. Applying for a loan against property involves filling out an online application form, talking to the representative on the phone, visiting its branch near you, submitting your documents and getting all other formalities done.

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3 things to keep in mind before opting for a loan against property.

There comes a time in each of our lives when we find ourselves in urgent need of funds; that’s when a loan against property can step in and save the day! Things like a child’s education cost, marriage expenses, starting of a new business post-retirement, expanding your current business or keeping it afloat can all be covered with the financial help of a loan against your property. These loans provide you higher funding that a personal loan and come with longer tenures and lower interest rates as well! All this makes them the perfect option when you need lots of cash and fast. However, before you sign your name on the application form, keep these 3 pointers in mind. 1. The interest rate & processing fee. Compare the interest rates on offer for a loan against property. Different lenders will have slightly different interest rates. Besides this, you should also compare the processing fee as this amount is a non-refundable charge that isn’t given back to you even if your application is rejected. Most lenders provide interest rates between 9.50 and 11.60 percent per annum. As far as processing fees are concerned, most lenders charge between 1 & 2 percent of the loan amount as the processing charge, some waive off the charge completely. 2. The properties eligible for a loan against property. You can mortgage different types of property to avail this kind of loan. Right from your residential property to a commercial shop that self-occupied, rented or vacant. Some lenders will even accept a vacant plot of land to provide you a mortgage loan.

However, you must have all the title deeds in hand and property shouldn’t be disputed. Moreover, if there are multiple owners, they will have to be in agreement with your decision to mortgage the said property, they might even have to sign some paperwork acknowledging this fact. It’s also important that you remember that different types of property have different LTV ratios. For example, residential properties fetch higher loan amount as compared to commercial properties, the reason being that lenders feel that you will try harder to save your residence than you would to save a commercial property. That’s also the reasons why a rented property will fetch you’re a lower LTV than a residential property.

3. Remember to get insurance if you don’t have it already. Insurance will ensure that if anything were to happen to you before you finish repaying the loan, the financial burden of handling a debt will be easier to handle for your loved ones. This is especially so if plan on mortgaging your residence. A simple term insurance should be enough to cover your debt whilst also being easy to cover as an expense. Besides these 3 points, another thing you should do is consult a financial expert. They will be able to point out any other factors you should be paying attention to. We hope this article has been helpful,

Good luck and all the best!

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3 reasons why a loan against property makes more sense than a personal loan.

A loan against property is a great way to get access to large amounts of funds to meet any of your urgent needs. However, it’s a personal loan that most people turn to when they find themselves in need of funds. Though personal loan will provide you the funds you need to cover things like a child’s marriage, further education plans, your plan to start a new business, expand your existing business, etc. there are several reasons why taking a loan against your property will be an advantageous decision in these circumstances. This article will highlight 3 of these reasons so you can make an informed decision between the two. 1. The amount of funding on offer. With a personal loan, most banks will normally provide 2 or 3 times the applicant’s annual income. This may seem like a lot but in comparison to the loan amount provided by a loan against property, it is still quired less. This is because, with a loan against your property, you can avail as much as 60 or 70 percent of your property’s value as the loan amount. Given today’s property values, this can work up to a sizeable amount.

2. The interest rates of a loan against property. The cost of the funding is another important factor when deciding between the two lending options. With a personal loan, you’d have to put up with exuberant rates ranging between 16 and 22 percent per annum. These are rates are really high in comparison to those of a loan against your property that most lenders offer with interest rates ranging between 9.50 and 11.60 percent per annum. Such low-interest rates will help you save loads of money over the tenure of your loan as compared to a personal loan. 3. The tenures of the loan. The tenure of the lending instrument you choose plays an important role in deciding just how easy to strenuous your repayment schedule will be. Longer tenures make for smaller EMI amounts and longer tenures make for better savings at the cost of much higher EMIs. However, with a long tenure, you can always cut short the tenure of the loan by making a prepayment as and when you are financially able to do so.

Therefore, it makes much more sense to go with a loan against property as it comes with tenures as long as 15 years. This is a good 60 months more than a most personal loan that comes with tenures of 10 years. The extra 60 months to repay the loan make it much easier to pay back the loan. So there you have it, three major reasons why a loan against property makes much more sense than a personal loan when in urgent need of funds. If you are still doubtful, you should consult a financial expert to see which one is better suited for you.

We hope this article will help you make a well-informed decision between the two.

Good luck and all the best!

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How to get access to quick funds in financial problems?

Loan against Property (LAP) is one of the ideal ways to finance your dreams without worrying about selling your property.  Many times people need access to immediate funds for varied purposes in life. At this point of time, if you approach a traditional finance or take a personal loan you'll be incurred a higher rate of interest and not enough time for repayment. Borrowing from friends or family members would be against dignity.

Therefore, experts opine a Loan against property would be the best solutions for your financial concerns. Under LAP, the bank or non-banking finance companies promise to give you a loan by keeping your property as collateral. Since they can already quote a value of your property chances are you may get a large sum of loan easily. Hence this concept is gaining popularity in India. LAP really gains the edge over the competition due to its easy documentation process, speedy approvals and flexible repayment measures.

When you take a loan against property you can fulfill whole lot of financial goals such as sending kids abroad for higher education, starting up your own business, inventory set up for it, plan a foreign trip, construct a new home in native or you may use money to marry your son or daughter as well.

Whether one gets a Loan against property or not, depends on the borrower's credibility along with factors like income stability, age, qualification, number of dependents, spouse's income, asset, liabilities for existing debt and stability in job or business. Once the loan amount gets approved it will be disbursed in full or installment to your bank account as per your instruction to them.

The best part is today housing finance companies and banks are offering LAP at attractive interest rates starting from 8.50 to range at around 13% and a mere processing of 1-2% on it. Borrowers can easily pick his or her choice of interest between fixed or floating. You get a flexibility of part and prepayment of the loan. LAP offered to the borrower will be based on the market price of the property you're willing to pledge. However, one thing you have to keep in mind is that lenders will only sanction an amount of around 70-80% of the property value. So, whenever you're approaching for LAP ensures that you have enough savings to meet your purpose in full.

The key benefits of LAP could be termed as:

•    Higher Loan Limits

•   Competitively low-interest rates compared to another form of loans

•    Longer tenure and flexible repayments

•    The best tool for debt consolidation

•    Easy and speedy approvals

•    Suitable to meet both business and personal needs

LAP is a great way to get access to immediate funds. However, in the end putting your house at stake is a serious business, so it’s advisable to carefully compare the options of leading NBFCs and banks and then go for it. Compare apple-to-apple regarding interest rates, processing fee, other fees, loan tenure, disbursal amount, monthly installment, pre-closure charges, etc. and then go for Loan Against Property. A genuine piece of advice: One should not use LAP as a form of risk capital but used it when you know you’re in good position to pay back the loan in the stipulated period.

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3 reasons why a loan against property is better than a student loan.

Like most other things these days, the cost of education to is sky-rocketing. In fact, pursuing an education overseas or going in for an executive course such as MBA is something not all of us can afford solely on savings and our incomes. This is when reaching out for financial aid is probably your best option. In such a scenario, most students opt for an education loan and though these loans are designed keeping in mind the needs of young aspirants, there is another alternative that’s worth considering and it’s called a loan against property. And to help you make a better-informed choice between the two, this article will highlight 3 major reasons why taking a loan against home or property is better than opting for a study loan. 1. A loan against property comes with better interest rates. Probably one of the biggest things you want to look at when selecting a financial aid is the cost at which it is made available to you, in short, the interest rate applicable. Generally speaking, student loans come with interest rates ranging between 10 and 16 percent. However, if you were to opt for a loan against property, you could enjoy significantly lower interest rates and better savings. This is because most lenders will provide you interest rates ranging between 9.50 and 11.60 percent per annum on a loan against property.

2. Longer tenures. The tenures of a loan go a long way in deciding just how stressful or smooth your repayment journey is. Longer tenures mean smaller EMIs and easier repayments whereas as shorter tenures invite much higher EMIs and strenuous repayments. With a student loan, you’d have a maximum of 10 years to repay your loan. However, with a loan against property, you can expect as much as 15 years to repay your loan amount. This means your EMIs will be spread across an additional 60 months resulting in much smaller EMIs. You can even cut short the tenures by prepaying the loan as and when you are financially able to do so. This means you handle your repayment on terms you are more comfortable with.

3. Better funding. Most lenders will provide you as much as 60 percent of your property’s value as the loan amount. This could work-up to quite a considerable amount of money considering the value of property these days. Availing similar loan amount through a student loan could require you to provide some collateral, probably in the form of life insurance or fixed deposits.

The only advantage a student loan has a loan against property is the moratorium period wherein you do not need to make any payments till you pass out or find a job, whichever is earlier. However, you must note that, even though you do not have to make any payments, simple interest will still be calculated during this period and this will be added to your principal amount.

So if you are in need of funds to pursue your further education plans, you should consider a loan against property. It’s a more affordable option that provides you the funding you need along with much easier repayments.

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Best ways to arrange quick finances to fulfill your dream goals.

A mortgage is a tool for debt that is protected using security deposit or collateral. Mortgage loan proves very beneficial for individuals who wish to fulfill their dreams related to personal or professional life.  For an individual, mortgage loans mean the owner of the land mortgages the property to raise funds through the bank or private finance companies.

There are various factors to adjudge the loan amount such as the location & age of the property, value of the property, your income source, credit score, your age, etc. Based on these parameters bank or finance companies will offer you the certain loan amount. One of the positive corner’s is that it grants the borrower an option to generate additional income from an otherwise idle property.

A mortgage loan is specifically designed for an individual who already has a property and in need of borrowing finances on an urgent basis may be to fulfill family responsibilities, start up a business, taking kids abroad on foreign vacation, or sending kids for higher studies, etc. The idea is to meet your finances keeping property mortgaged instead approaching traditional financers who offer money at exorbitant interest rates and no flexible ways of repayment. In case you borrower from your family or friends that it will be against your dignity. So, mortgage loan proves to be the best helping hand for individuals who are searching finances during their rainy days.

However, it’s important that the property against which he or she is taking up the loan amount should be free from any encumbrance which means it’s not kept as security already. The borrower will pledge collateral in the form of property for the loan amount which he or she desires to get from bank or finance company. The happiest part is the borrower will always maintain the right of ownership of the property and continue to use it. When he or she repays the total loan amount till the specific tenure of the loan, he can get back the property.

Although some of the purposes are specified to avail the mortgage loan, you have to ensure you don’t use it for any illegal purpose or indulging in any speculative activity.

There are leading private finance companies that offer mortgage loan at an interest rate as low as 9.60% to 12% with a mere processing fee of just 1.25% on the principal amount. To ease out the burden of fixed or floating rates, they have introduced adjustable (floating) rates. In case, you wish to take fixed loan interest rates there are some lucrative offers like transfixed loan 2 years fixed rate variant and like transfixed loan 3 years fixed rate variant.

The repayment tenure for the loan varies from around 10-15 years, based on the bank or private finance company you wish to choose and your relation with them. For a better understanding of interest rates, processing fee, pre & post penalty charges, terms and conditions, inclusion & exclusion, you can always visit the relevant website of the firm or bank. If you have any doubts in your mind you can always clear the cloud by speaking to phone banking officer or chatting online with the team for more detail information.

Private finance firms or banks verify the relevant documents related to the title of the property, residence proof, ration card, aadhar car or electricity bill. For identity, you need to submit voter ID card, passport or PAN card. If you’re employed, you need to provide a bank statement of last six months, while a self-employed person will have to give a certified financial statement for past 2 years.

Bank and finance firms will also have a background check of your credit history through CIBIL and scrutinize your repayment track record. Mortgage loan varies from individual-to-individual. Your property is now the biggest companion that serves the dual purpose of accommodation and financial help during emergency or needs. Count on your property and achieve your life goals.

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Borrow finance with ease on your property.

People plan for various things to upgrade their lifestyle needs such as getting the home renovated, sending your children for higher studies abroad, or financing their business so as to take it to the next level. You need to be very strong in your personal finance or you need to make financial arrangement for all. It’s often the fund availability that acts as a hurdle to fulfill their goals.

If you approach a traditional finance they will give you money at exorbitant interest rates, lesser repayment time. Secondly taking financial help from your family or friends would always keep a fear of a rift in the relation.

But one of the safest and most convenient ways to arrange finances is taking a mortgage loan from banks or private finances. You can go for the loan on property by pledging property as security.

Loan against property is one of the most convenient types of loans available in the markets. It can help you meet funds for various needs and comes with several benefits.

Some key benefits of taking a loan against property:

Good for availing higher amounts

This loan proves a good move when you take for higher amounts. The average interest rates, processing fees, and other charges incurred are relatively lesser compared to small amounts. Also, you get plenty of time for around 10-12 years towards loan repayments.

Lower Interest Rate

Leading banks and private finance companies have cut down the interest rates as low as 9.60 % - 11.60% with a processing fee of mere 1.5% of loan amount or Rs 4500 whichever is higher, plus applicable taxes. A good credit score and proper income source often help us get a fair deal. You can approach banks and finance companies to negotiate for better rates.

Longer Tenure

When you take a loan for longer tenure it will lower down your monthly installments. You can plan your finances accordingly and see through it that the amount is kept aside for timely payments.

Good debt consolidation tool

By taking loan on property you can combine several unsecured debts such as credit cards, medical bills, personal loans, etc. under one single bill. Instead of signing off several cheques and incurring different fees which proves expensive you can consolidate bills into one payment. Also, it eliminates mistakes that result in penalties due to an incorrect amount or late payments.

Funds for several purposes

Right from business expansion to children higher studies, starting a café to foreign trip all your dreams can be fulfilled through a loan on property. The extremely low-interest rates, flexible repayment options with ample tenure for loan repayment make them the most suitable borrowing finance options.

Every bank has a different form of processing fee. For a better understanding of documentation & fee charges, you can always visit the relevant site, discuss with the online chat team and make sure the mandatory document are handy for speedier approvals.

Loan on property is a blessing in disguise for millions who struggle to arrange money to fulfill their family dreams, medical emergencies or other priorities in life. It helps to get access to large corpus at a short span of time. There are mortgage calculators as well that will help you plan your repayments in a very efficient manner. You can stay prepared with the monthly EMI’s, interest rates incurred and ways to save money for easy loan repayments.

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Features & benefits of loan against property.

With the passage of time your property not only grows in age but it also grows economically. This has the potential to bring you out of any financial crisis without taking any favor from friends or relatives. Loan against property from various lenders in the market, helps you to unlock the potential value of your home or property in a very short notice to get loan for your immediate purpose.

The reasons can be personal or commercial. If you own a particular property, then you can get a loan of almost 50-60% of the property value by mortgaging it for certain period of time. Easy availability, lower interest & maximum repayment tenure makes it one of the most favorable collateral.

Loan against property helps the individuals in need, to have a financial support without selling your property.

Some of the features of mortgage loan are as follows:

1.     You can mortgage fully constructed, freehold residential & commercial properties to get the loan against property.

2.     The borrower can get the loan for business & personal needs, marriage, treatment, education, etc.

3.     You can also get the loan to transfer the outstanding loan from one institute to another.

4.     The repayment tenure can be stretched up to 15years.

5.     You get flexible repayment option in form of EMI to pay off your loan without much hassle.

6.     The interest rates are much lower compared to other personal & commercial loans.

7.     Integrated branch network & services make it easier for the borrower to get the loan easily.

The above mentioned features proves that loan against property is one of the best options to get a lump sum amount for big budgeted financial need.

 Mohit was looking for some financial help to open a shop in one of the biggest mall of the city, but nobody was ready to invest in his startup business. So he decided to move ahead with his plans by approaching the RBI authorized lender with whom he already maintained an account.

The professional advisors suggested him to go for loan against property, because he would get a long term to pay back the loan at a competitive rate of interest. So he decided to mortgage the plot of land which he owned to get the amount, which he needs to invest in the shop he wished to purchase.

The bunch of benefits he enjoyed is as follows:

1.     The loan was easily approved because the collateral was dispute free & owned by Mohit himself.

2.     He took the loan from the same institute in which he maintained an account, so his loan was processed quickly and received almost 60% of the present value of the property.

3.     He enjoyed pocket friendly EMIs because of the lower interest rates & long tenure.

4.     Owing to the flexibility, he could increase the EMI amount with the improvement of his financial affordability.

 Now, Mohit is running a successful shop in the mall of his dreams. He is paying his EMIs regularly and is also saving a lump sum amount to pay off the loan against property quickly and free his property from the debt clutches.

You can also make use of mortgage loan when you need lump sum amount, but only condition is that you should be well prepared financially to pay off the debt & free your property.

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Bootstrapped start-ups made big with a property loan.

Bootstrapping is not a new idea to start a new venture, every individual have some dreams in life to be self accomplished. Everyone doesn’t go for salaried job, some wishes to establish new business by investing in some infrastructure. But it is not as easy as it seems, because investing in buildings, plots or under construction buildings needs lump sum amount.

Though it is a new fad but mere bootstrapping cannot serve the expensive purposes. On such occasions property loan comes to action to cover up the required amount to invest in some property either for staying or setting up the business. So it helps the borrower to invest in the asset of his choice, without stressing their pockets.

Property loan helps the borrower to get a lump sum amount of money from the financer to buy a property, which can be anyone from the above mentioned list of assets. Smita has always been a keen learner, in love with studies. After excelling in her academics & career, she decided to start an IIT coaching centre for the aspirants. Her savings helped her to kick start the venture, but in order to extend it, she required a lump sum amount. So she decided to approach RBI authorized financer to get the loan.

Before approaching the lender, she collected all the required information available in the online website of the concerned financers in the market.

Then she combed down three or four financers who had few of the specified features, mentioned below:

The combed financers in her list offered her competitive interest rates for maximum loan amount, depending on the loan slab.

They were offering assistance for property selection from authorized chain of builders.

The documentation were claimed to be hassle-free with minimum essential documentation.

They were offering flexible repayment options with longer tenure.

All the above mentioned features are quite attractive for the borrowers. The factors which helped Smita to choose the one from the four combed lenders were their easy terms & conditions, market goodwill & good reviews from the existing borrowers.

The bootstrapped start up of classroom coaching evolved into an IIT coaching centre with the property loan. Many people like Smita are coming forward to join the bandwagon of loan eagerly. They don’t have to stress their budget with expensive EMIs and short tenures. Once can comfortably pay back the debt with small installments for a longer tenure of almost 30years.

On top of that, they have the flexibility to increase their EMIs with increase in income, so that the borrower can easily & quickly payoff the loan, without counting savings for paying the extra interest cost.

Only make sure that you have a good credit score, disciplined banking statement & no existing debt, when you are applying for the property loan. It not only streamline your loan process but also helps you to get the scope to negotiate for the interest rates and get maximum loan amount that you are eligible for, depending on the loan slab.

The best thing you can do after online research is that take professional advice for making a well informed decision. Debt is meant to be paid without fail, so it’s better to evaluate your financial profile & affordability before taking a property loan.

All the best!

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Loan against property can serve your immediate fund requirement.

There are many situations in our life when we need lump sum amounts of money for immediate personal requirements. Asking for financial help from relatives or friends is the last option we would look into. Getting a personal loan can be expensive with high interest rates. Loan against property is the best option for the people who have commercial or residential property to mortgage and get the required amount as loan from the lender at an affordable rate of interest. There are various purposes when we need lump sum amount, but getting the amount quickly and at affordable rates become difficult. In such situations a mortgage loan can help.

One can avail a mortgage loan against the fully constructed property, commercial & freehold residential properties. So if you are in need of immediate funds and have any of the kind of aforesaid properties then you can go for the loan against property. You can get the loan for various purposes of:

Starting a new business or extending an existing business.

Marriage, treatment expenses and other personal expenses.

You can get the mortgage loan for transferring the outstanding loan availed from any other lender.

These are few purposes; your purpose may vary, so it is better to consult the lenders before taking the loan and getting your queries cleared. You can apply individually or jointly for the mortgage loan. Depending on the borrower’s financial profile, age of the applicant and the property; the tenure can be stretched up to 15 years. The maximum amount of loan money the applicant would get varies from 50-60% of the mortgaged property’s present price. The interest rate is determined depending on the loan slab, type of interest rate & nature of the property (residential/commercial), which lies between 9.5-11.5%.The processing fee is around 1.5-2% of the loan amount.

It is better to unlock the potential value of your property and use it for your purpose, than getting a personal loan and pay the debt with high interest rates. There are some benefits you get, when you mortgage your property and get a loan:

The loan tenures can be stretched up to 15 years.

Longer loan terms, reduces the EMI burden. Making the debt repayment hassle-free and are easily absorbed by the monthly expenditures.

The interest rates on the loan against property are less compared to the personal loans. Affordable rates ease the debt repayment.

Easy and hassle-free documents make it easier & faster to get a mortgage loan. So the purpose is solved quickly and easily.

Loan repayments are easier with monthly EMIs.

All you need to submit the required documents for establishing your identity, address, and job and the bank statement reflecting your expenditure habit and loan repayment discipline. Along with basic documents you need to submit the papers of the property you want to mortgage and proof of no encumbrances on the property are required to be submitted. After getting the loan; repay the amount as soon as possible.Avoid skipping your repayment installments, because it will not only hamper your credit score but may risk your mortgaged property.

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Planning your child’s marriage? Consider a loan against property!

There are some turns in our lives, which calls for financial attention. Your child’s marriage is one such turn, our Indian families are abided by traditions and they consider their child’s marriage to be one of the biggest responsibilities along with their health & education. During such occasions, you need a lump sum amount to arrange a grand function for your child’s marriage. On such instances unlocking the potential value of your property by mortgaging it can serve your purpose. The financers offer you loan against property and give you the required amount depending on the present market value of the concerned property. You can mortgage your residential or commercial property, to get the required amount.

If you would go for a personal loan for the purpose, then chances are there that you may end up paying high interest cost for a short period of time. If you opt for a mortgage loan then you can enjoy following benefits:

You can get the loan not only for marriage purpose, but you can get the loan for business extension, child’s education, treatment or any personal need.

Mortgage residential or commercial property.

Get the maximum amount of the loan value that varies from 50-60% of the property’s present market value.

Flexible repayment options with EMI based loan or overdraft facility.

 Maximum loan tenure for easy repayment.

Attractive interest rates.

Loan against property is for both the salaried & self employed.

Depending on the loan amount slab the rate of interest is determined, which varies from 10-13%, for 15years. Affordable interest rates and long repayment terms make the mortgage loan a handy option for immediate fund requirement.

To take the mortgage loan for your child’s marriage, start planning beforehand, so that you get the required amount in time. Go through the online aggregator sites and compare:

maximum loan amount they offers

rate of interest along with the maximum tenure

repayment options they have

If you select your financer after comparing the aforesaid elements, then you can get a good financer, who can help you to serve your purpose. In order to lessen the EMI cost, never stretch your loan tenure, because it may reduce the EMI figure but it increases the interest cost. Make use of the EMI calculator available in the aggregator site or in the financer’s web-page and get an idea of basic debt fund structure and adjust your expenses accordingly. When you are taking the money for your child’s marriage, chances are there that you are closer to your retirement phase, so planning is very necessary, a single mistake can over burden you with debt.

Getting the loan against property is easier and quicker, but the repayment of the debt can be exhaustive so make sure that you take the required amount only and your monthly income source can easily absorb the EMI cost so that you can easily repay your debt. Though you are mortgaging your property to serve a particular purpose, but don’t risk it by being a defaulter. Check your financial profile & affordability before taking the loan against property

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Here are 5 things to remember before taking a loan against home.

A loan against home, also known as loan against property or mortgage is a great way to meet any of your dire funding requirements. A loan against property is also one of the most common borrowing instruments among borrowers. This is because of the quick approvals, minimal documentation and convenient repayment options available on these kinds of loans. That said, loan against property is a good option, but before you opt for one, here are some points to remember. First and foremost, the interest rate: The interest rates for loan against home range between 10 and 14 percent. This is a little higher than normal home loans or education loans. So it’s advisable to opt for a loan against property only and only when you require funds for a purpose other than education or home renovation. Because even a percent or two less and you could end up saving a considerable amount in the interest you pay. So only opt for a loan against property when not able to receive a loan specific to the purpose you need the funds for. Loan amount: With a loan against home, you stand to receive anything between 40 and 70 percent of the market value of your home as the loan amount. This can go up to several crores of rupees depending on the value of your house. Keeping this in mind, it’s wise to opt for loan against property only when the market value of your home is high and other borrowing instruments don’t provide you with adequate fund for your needs. Also, with loan against property, it’s not advisable for small loanamounts as it doesn’t make sense putting your home on the line for a small amount. Only when the financial need is very large you should go in for this kind of loan.

Tenure: When it comes to tenure, loan against home has an edge over other borrowing instruments. Tenures for loan against property can go as high as 15 years, which is much more thana personal loan. This also means you have more time to pay a smaller EMI. If you take out a personal loan, you will have a shorter loan tenure and larger EMI; this could put a strain on your income source and upset your financial standings, whereas loan against property affords you the luxury of a smaller EMI that can be paid over longer periods of time. The only catch is point one, higher interest rates, which mean you pay more in terms of interest. Tax benefits: Unlike other borrowing instruments such as educational loan or home loan, the loan against home doesn’t provide much in terms of tax deductions on EMIs. However, if you take out a loan against property for business reasons then the borrower may apply for tax deduction on interest paid. But for this, the loan taken must be used for expansion of business and there should be some proof to support this claim. Processing fees: Just like all other loans, the loan against home also invites a processing fee. Most banks charge one percent of the loan amount as a processing fee, but non-banking financial institutes can charge you up to two percent of your loan amount as processing charge. So whilst opting for a loan against property it’s wise to compare these costs as well whilst comparing all other variables before fixing on a particular lender. All-in-all, a loan against home is the best way to get your hands on a large chunk of money for any other purpose besides home renovation and education. It is a great way to arrive at funds to expand the business and if you’re thinking about one, you should definitely go over the above points with the sales representative of your lender.

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‘Loan Against Property’ your best friend during financial needs…

It's an age-old concept that your property is said to be the best investment that will reap you benefits whether you stay in it, rent it or sell it after a couple of years. However, another golden corner of modern times of owning suitable property is to take a loan against property. People need to fulfill wishes or responsibilities at every stage of life. It could be taking the first step of your new business or children education or daughter’s marriage expenses. The needs and demands are never complete. Borrowing finance from traditional financiers would be a cumbersome job. Besides incurring hefty interest rates on the loan, they have stringent payment measures and lesser time for loan repayments.

Therefore, many banks and finance companies in India have introduced a unique and most beneficial way of taking a loan against property to finance your dreams. These loans come at a fairly low-interest rate, flexible repayment tenure and ample amount of time for repayments.

If you’re wondering how to apply for loan against property, the amount you get qualified for then here are few answer to address your concern

Amount

The loan amount depends upon your age, maturity age of the property, area and the market value. After examining these factors banks or NBFC will quote a value to offer you as a loan. They have interest rates like fixed or floating, semi fixed & floating rates. So, based on your income source and risk appetite you can take the loan amount and set your interest rates.

Credit Score

While applying for a loan against property its important you maintain a good credit score. If you fail to do so you might get higher interest rates or the loan application might get rejected as well. So, its better you make all your payments regarding other debts, credit cards on time to maintain an extremely good credit score and qualify for the best deals.

Market Value

The market value of your property makes a huge difference in qualify amount. The loan amount is based on the current market value. So, if it's dipping you will get lesser loan amount alternatively if its rising you has the advantage of taking a top-up loan as well.

These loans can be applied for by an individual, either solely or jointly (in most cases spouse). The most important part is that most people think property mortgage means handing over the property to the bank or private finance companies. However, it’s a big misconception. Even though you take a loan against property, you still enjoy the occupancy of your property.  It’s only in dire conditions that if you’re unable to make repayments that you will have to handover the property to the bank or finance firm.

While the loans are available at a relatively lesser interest rate of around 10 to 12% the repayment tenure for such loan varies from around 10 to 15 years based on the bank or finance firm you wish to take a loan and your existing relationship with them. For a better understanding of documentation & fee structure, you can always visit the relevant site and make sure the mandatory documents are available at the earliest for the application.

To apply for a loan against property you can visit the website of desired bank or finance firm, fill up the application form, attached scanned copy of documents and hit the apply button. Within a couple of days, you’ll be informed about the loan status via phone or email. Thus, at the touch of the button on your smartphones, laptops or computers you can arrange finance to turn your dreams into reality.