posted on 2019-09-26 09:42:10 by Admin
Loan Against Property is a secured category of loan. This can easily be availed by a person by mortgaging his property. The Banks put forward the facility of Loan against Property which is residential, commercial or just vacant land.
It's a kind of secured loan; therefore in case the applicant is unable to pay back the loan amount for whatsoever reason, the concerned financial institute has all the rights to take over the mortgaged property. This asset of the client, kept as security is then utilized to recover the outstanding loan amount. On the other hand, the property ownership rights stay with the customer during the complete tenure.
The borrower can normally utilize or lease the property if the loan is against a commercial property. Only if the applicant is unable to pay back the borrowed amount, the bank can put up the property for sale in order to clear up the remaining loan amount. In the case of a joint property ownership rights, all the co-owners should be the co-applicants for the loan.
The approval of loan against property is based on the mortgaged property and is considered as the most affordable loan after home loans. The normal Interest rates vary from 9.75 to 22% and the tenure is 15 to 20 years. The financial institute decides about the loan amount to be sanctioned by evaluating the current market value of the linked property together with the repayment ability of the borrower. There is no risk of default involved as the collateral is involved.
loan against property eligibility terms:
● Cibil should be above 650
● 23-58 years of age (for the salaried applicant)
● 23-65 years of age (for self-employed)……………….
● 3 years experience
● 3 months salary slip
● Log-in fee
● Minimum income should be 15,000 and above
Documents Required for Loan Against property:
● ID proof
● Signature proof
● Address proof
● PAN number
● Income proof (3 months salary slip and bank statement for the salaried applicant, Income tax return, GST, bank statement, business registration)
● 13-year property chain copy
● Login Fee
● 2 photographs
Support your goals with the help of your property. No matter you are planning to expand your trade or require some temporary funding for personal use like education purpose, medical expenses, home renovation or a wedding, a funding option such as loan against property endows the applicant with a loan amount up to 10cr for duration of 15 to 20 years at least possible interest rate.