Ease Your Finances With Loan Against Propertyby Alisha Antil Financial Blogger
Whether you are planning to purchase a lavish property or sending your child for higher education, personal loan cannot be feasible always for factors like low income, low credit score, etc. Also, the personal loan limit may not be sufficient for your requirement. In such cases, a loan against property instant approval can be the solution.
Loan against property is a secured loan sanctioned against mortgage of land/house property or commercial property owned by the borrower. One of the best features of loan against property is that it has no end-use restriction. Also, a good credit score is not mandatory to avail finance as this is a secured loan. Loan Against Property Interest Rates are quite lower in case of other loan available. Thus, the repayment option is quite easy process.
Here is a guide to help you sort out your financial worries easily.
Loan Against Property Features and Benefits:
Security Type – Loan against property is a secured loan. A financial institution sanctions it to you against a residential or a commercial property. It can be a house or a land you own.
Quick Approval – The approval process of loan against property is usually fast. For example - Bajaj Finserv disburses the finances within 72 hours.
Affordable High-Value Loans – A self-employed individual can avail a loan against property up to Rs. 3.5 Crore. Again, a salaried individual can avail finances up to Rs. 1 Crore.
Financial institutions calculate the loan-to-value ratio for decide on the sanction amount. The general benchmark of loan-to-value for a loan against property India is 70-80%, with some institutions going higher.
Long Repayment Tenure – Loan against property tenure ranges from 2-20 years which is a considerably long time for repayment. One can repay the loan in easy instalments for a longer time. Loan against property also offers low interest rate making it further affordable.
Part Prepayment or Foreclosure Option – Lending institutions also offer the option to part-prepay or foreclose the loan. That means, if you have sufficient funds, you can repay a portion of or the entire loan amount any time before the tenure ends with nominal charges. This option allows you to save a lot on the interest portion of the repayment.
Flexi Hybrid Feature – Bajaj Finserv provides Flexi Hybrid feature where customers can withdraw their required from a pre-set limit any time. Borrowers have to pay interest-only EMIs on the utilized amount. They can repay the principal amount once and for all at the end of the tenure.
Additional Read: Guidelines to Follow for Instant Mortgage Loan Approval
Loan Against Property Eligibility:
The eligibility criteria to avail loan against property are different for self-employed and salaried people.
For Salaried people –
Age should range from 33 to 58 years.
The person must be working in an MNC or even a public or private company.
The person should be an Indian resident owning a property.
For Self-Employed –
The person should range from 25 to 70 years of age.
The self-employed person should have a regular source of income.
He/she should be an Indian resident.
Also, the loan against property documents required are different for salaried employees and self-employed applicants.
Documents Required for:
Salaried Employees –
Current salary slips.
Bank account statements of last 3 months.
Bank account statements of last 6 months.
You must ensure that you meet the eligibility criteria for a Loan Against Property Instant Approval. Keep your documents ready before applying. However, along with these features and eligibility requirements, one must also know the things to avoid while availing a loan against property. It’ll enable one to enjoy the benefits of this financing option to the fullest.
Created on Aug 17th 2018 01:14. Viewed 829 times.