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
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.
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.
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.