Loan against property is a type of loan in which one can get a property. The property can be commercial or residential. It is kept as collateral with the lender. An individual can get the loan and use it for other purposes like business expansion, wedding, child’s education, etc.
Loan Against Property serves as a secured personal loan that anyone can avail by putting it up against the property. The Property serves as a security or collateral to the bank or money lender.
This personal loan process is also known as a mortgage loan. Loan Against Property interest rates vary between 8.00% p.a. to 25% p.a. One can apply for the loan up to Rs.25 crore and pay it off within the next 20 years.
Features of Loan Against Property interest rate
- The Shorter the repayment period, the higher the interest rate will be, and the longer the repayment will be, the less interest will be.
- The credit score must be 700 and above if one wants to apply for a loan.
- The market value and the type of property plays an essential role in determining the interest rate charged by the lender or bank.
- The age, occupation, income, Loan Shop UK Best Equity Release etc., are as important as they can be in determining the rate of interest charged by the bank.
Documents needed for Loan Against Property
- Anyone out of the PAN card, Passport, Driving License, etc., will work as identity proof.
- Passport, Electricity Bill, Aadhaar card, etc. Any one of which will serve as Address proof.
- A Copy of the original sale deed, a copy of the allotment or possession letter, and a NOC from the society the property is in.
- Income Proof-like Latest Income Tax Return Certificate, Form 16, salary slips, audited financial sheet, certificate of practice, qualification certificate, Shop Act License, Sales Tax Certificate, etc.
The process to apply for Loan Against Property:
The process to apply for Loan Against Property is quite simple and non-tasking. However, one important thing is getting the documents approved and the loan sanctioned. The whole process is discussed below:
- The customer can visit the website of the bank or any other financial institution and apply for the loan online or visit the bank itself.
- The bank officials will then fix a meeting with the loan seeker and ask for the requisite documents.
- The bank will then verify the documents and then inspect the applicant’s property of the loan application.
- If the application gets approved, then the loan amount will be directly credited to the applicant’s bank account.
Benefits of Loan Against Property
There are various benefits of obtaining a Loan Against Property.
Few are discussed as below:
- Bank offers a Lower rate of interest.
- The officials of the bank simplify the documentation process, and after verification, the loan is approved.
- There is an excellent relaxation in repayment of the loan as the loaning individual can repay up to 20 years.
- The ownership of the property is still retained by the owner even if there is a loan seeking.
- With the loan amount received on the property, one can meet all the requisite requirements.
Loan Against Property is one type of loan that most people want to cite for many reasons. One can certainly obtain this loan and fulfil the requirements duly and pay off the debt in the years promised—the most sought-after type of loan which is less tedious and non-complicated. The type of loan can be sought from any bank or private financial lender, but one should be careful with the private ones. Before applying, one must study the whole process and talk to someone experienced.