These Are The Advantages Of Taking A Loan Against Property, Why Should It Be Taken?

Difficulties in life can come like a guest without ever being called, due to which our financial planning is lost. Many of us plan well for emergency situations and make funds. But is this enough for all situations? Our savings help us in emergency situations. But some people do not have that much fund at that time. In such a situation the options are very limited – you either borrow money from your family or friends or take a loan from the bank. In both cases it is uncertain that you get the amount you want. But what will you do if friends or family refuse to help you or if the bank also refuses to give loans due to your low eligibility? How to deal with the situation? What are the options where help will come from?

– The loan taken against mortgage of the property is a secured loan. The loan amount that you get after mortgaging the property, you can fulfil the needs of personal and business. This amount can be more than you need.

– You can mortgage your property with the bank or any financial organization. After this, you will get a loan against it.

– After pledging the property, the amount received can be used for various purposes without any restriction.

– Loans can be availed by pledging any residential, commercial or any land, including agricultural land. Only land or property should be in your name.

Anybody can take a loan in lieu of property, whether he works or runs his business.

– The maximum period of loan against property is 15 years. But it depends on your eligibility and customer profile.

– A customer can get an LTV of 60-70% through a loan against the property, which means when you take a loan against the property, the amount you get is 60-70% of the market value of the property. , Which you have mortgaged.

Benefits of taking a loan against property

– You get a big loan.
– Interest rate is low as compared to other loans.
– Loan period is long.
– Low EMI
– There is no restriction on the use of money taken.

Rate of interest on loan against property

In the loan that is obtained by pledging the property, the interest rate is lower like other unsecured loans. The reason for this is that the guarantee you have given to the bank is as a property mortgage. The lenders also feel safe because the security you have kept is given by pledging the property. Customers can choose fixed or floating interest rates according to their convenience.

What are the risks

If for some reason you are unable to repay the loan, then the lender has every right to get your money back by selling your property. So whenever you take a loan by mortgaging the property, there is a risk that if the loan is not repaid, the property can be owned.

Documents required to get a loan against property

– ID proof like KYC documents
– address proof
– ITR Document
– Last 6 months bank statement
– Property Document
– Check
– Passport Size Photo

Ability to take a loan by mortgaging the property?

In LPA eligibility, your credit score, income, age, qualification, number of dependents, assets and the company for which you are working are seen. Once the loan is approved, you will get either the entire amount or in a fixed instalment. The loan will be completed only when the applicants complete all the eligibility of the lenders.

Why take a loan against property mortgage?

Whenever you need a large amount, a loan can be taken against mortgage or property. loan against property is also recommended because there is no restriction on the use of the amount charged. Whether you use it for personal work or for business. loan against property can be used for all.

Another advantage of loan against property is that the money received is low on the interest rate. Suppose you need 15 lakh rupees and to complete it, you take a personal loan, for which the interest rate is 15 percent for a period of 5 years. At the same time, if you take a loan in lieu of the property, then you will have to pay only 10 percent interest rate in a period of 5 to 10 years. In this way you can save a lot of money by choosing loan against property.

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