What you must know if you are planning to take a loan through a mortgage.
by Finway FSC Empowering People FinanciallyFinancial
Crisis can hot anyone owing to the volatility and the recession in the market.
The unpredictable market urges people to take loans and with those who are
first-timers, it is difficult to take loans. This happens due to low
creditworthiness. During such a scenario one can take a loan against property. This is different from taking a Business Loan in Delhi. If you own a
property, you can mortgage it to the bank and against it can receive a
stipulated amount. This loan needs to be repaid in monthly installments and has
a rather low-interest rate. Below listed are things you must know while opting
for such a loan.
Low Interest rate: When a loan against property
is taken, since you have given your property as security,
the interest rate is low. This allows an easy repayment of the loan. When
collateral is offered to the bank, the money that the bank has given as a loan
becomes safe. So in the worst-case scenario, the borrower is unable to pay, the
bank can take the property under its jurisdiction.
No Prepayment charges: There are
no prepayment charges if you wish to repay the loan before time. This is unlike
other kinds of loans wherein the bank usually charges a prepayment while you
plan to repay the loan before the loan period. However, now some banks have
started charging, but this amount is very low.
Long term of the loan: The
tenure for collateral loan ranges from five to fifteen years. This duration is
rather long when compared to an unsecured or personal loan. This gives enough
time to the borrower to repay the loan.
Easy loan: When you opt for a personal loan
from a bank a lot of documents are required. The processing of the same also
takes a lot of time. This is unlike the loan with collateral. Here, the
paperwork is minimal. The value of the property is estimated by the bank and
then the loan is extended without further ado.
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Created on Nov 19th 2019 01:15. Viewed 313 times.