Articles

How to avail of loan against property?

by Finway FSC Empowering People Financially

Banks and financial institutions often provide loan against property. It is a type of secured loan. Investment advisory services are available for providing such loans also. The loan usually does not specify the reason for which the sanctioned amount must be used. It usually carries a higher rate of interest than a normal home loan.

Loan against property in Delhi can be taken against any property which you have in your possession and under construction projects are not considered for loan. The property would of course have to be an authorized construction.  Banks would provide an amount of about 20 – 35% of the asset value so a house valued at a crore of rupees would fetch INR 30 lakhs worth of loan. Bank maintains a huge margin in case there is default.

It may seem that the bank is going to make a nice profit if there is a default it is actually not so. A bank would actually like the loan amount to be paid back instead of selling the property. Selling a property is difficult since it has to be auctioned. Also value of property varies from year to year.

It is due to this reason that eligibility criteria for such loans is very strict. For this type of secured loan credit score is not very important. What is important is the income stream of the customer. A complete account  is needed  of his income and other outstanding loans. Based on this and his age a loan is granted. Emergency Loan Online is available for those who meet the criteria.

Reasons for obtaining loan against property

·         It is very easy to provide capital for a business using loan of this type. The interest rate is less than personal loan and it is easy to infuse new capital into ones business.

·         This kind of loan is very often utilized for child’s marriage. Marriage is a huge expenditure. It is often difficult to defray the cost and loan against property is a good idea in such cases.

·         Loan against property may be utilized for sending children abroad for higher study. Higher study abroad is expensive and costs several lakhs every year. To meet such huge expenditure loan against property is essential.

To provide for medical treatments one often takes out loan against property. 

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About Finway FSC Innovator   Empowering People Financially

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Created on Dec 18th 2018 00:29. Viewed 156 times.

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