Basics of borrowing and repaying loans.

Banking has to be one of the greatest inventions of humanity that led to the birth of global economy and got us to where we are today. The system of borrowing and lending allowed many people to get on with their dream projects and achieve success. Even today, to meet the best standards of living, we want to buy our dream houses, and for that we need to get low interest home loans. Often, people take loan against property in Delhi because they are secured loans and therefore, have lower interest rate and are easier to avail. If you are living in Delhi and are running a little low on money, then this article will be able to give you some vital information.

How do loans work?

Loans have existed in our society since days of old. Earlier, rich people used to lend money to the needy, but they charged heavy interest and this led to exploitation. But with the growth of banks and now NBFCs (Non-Banking Financial Companies), taking low interest home loans or other loans has become really easy. NBFCs facilitate quicker disbursements and offer loans at a lower interest compared to the traditional banks – which has led to them getting more popular in the past few years.

What are the different types of loan?

Loan against property

It is a kind of a secured loan and you can acquire it by pledging your property as collateral to the lending authorities. Since loan against property in Delhi is a secured loan, it can be availed much easily and at a reduced interest rate compared to a personal loan. The minimum and maximum amount of loan that can be borrowed ranges from Rs 10 lakhs to Rs 7.5 crores! You need to have a monthly income of at least 25,000 i.e. an annual income of 3 lakhs.

Business Loan

To advance and expand the business and enter into new dimensions, it is sometimes necessary to take a business loan. It is like a general-purpose loan. With drop-line overdraft facility as nature of the facility, that targeted group must engage in service activities, manufacturing and wholesale/retail trade. Getting a business loan in Delhi isn’t that difficult. The range of credit that is offered to the borrower depends upon the credit history of the borrower, nature of business, annual turnover etc., and ranges between 10 lakhs to 25 lakhs. The repayment tenure is usually set around 60 months but it may vary depending upon the institution you’re borrowing from.

Home Loan

With Delhi having become an industrial hubs, many people from all over the country have moved to the capital in search of jobs and those that have found their dream occupation want to settle and for this, they need to get a home loan in Delhi. Each year, nearly 30 lakh families get their dream of living in their own home fulfilled. To avail the loan, you should be between 18 to 75 years old. You can set your repayment tenure as you like but it’s often better to go for a longer term than a shorter term in order to account for any unforeseen financial emergencies.

If you research well, compare the different options, and read the offer documents carefully, you’ll have no problem in getting or repaying the loan. So be vigilant and smart.