In India, several
persons have their dreams and needs. Price of goods increases day by day. It is
difficult for the person to manage with the limited salary. Several banks and
financial institutions provide a loan to the needy persons at the best rates.
There are several kinds of loans provided by banks such as home loan, gold
loan, personal loan, education loan and home improvement loan. There is another
loan provided by banks is a loan against property. Loan against property means
it is a multipurpose loan which can be accessed by mortgaging the existing
property or residence to meet the financial needs.
This loan can be used
as any type such as dream vacation, education, debt consolidation, renovation
of home and buying a new car. Person who opt loan
against property can get a loan at the best rates. This
loan can be availed by salaried persons, self employed persons, private limited
companies and partnership firms. Several banks have their own eligibility
criteria. Person can get a loan ranges from Rs. 2 Lakhs to Rs. 10 Crores.
Amount of loan depends upon the value of the property, savings, income,
repayment capacity and credit history. The minimum age of the person is 21
years, and the maximum age of the person is 60 years. Person can normally take
a loan amount up to 50% of property value for commercial setups and 60% for
residential property.
Banks required clear
documentation for loan against property such as Employment proof, age proof,
Income proof, last 6 months bank statement and Salary slips. Person should
maintain their credit score, before applying for loan against property. Person
having decent credit score can get a loan at the cheapest interest
rates. Person having poor credit score can get a loan at
the highest interest rates. Banks also check your repaying capacity. It is easy
for the salaried persons to take a loan because of their regular income. Person
needs to deposit their property as collateral to the bank. In any case, if a
person fails to pay off the loan, banks take the property of the person. Most
of the financers provide this loan online. Person can also apply for loan
against property online. Person can also compare all lenders and their interest
rates online to find the best lender. Person has to repay the loan in EMIs.
Banks
offer two types of interest rates: Fixed rates and Floating rates. Interest
rates range from 12% to 15.75%. Loan against property approved for a tenure of
15 years. Fixed interest rates means the person has to give the interest rate
same for the entire tenure period. Floating rates means it varies according to
the market fluctuations. Customers can choose to make repayments either through
Electronic Clearing Service or Post Dated Cheques.
