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.