Posted On: 25-August-2022
Loan against property is a kind of secured loan in which you get the option to avail credit by mortgaging an owned property or asset. The land or asset can be both residential and commercial. Loan against property is usually given out to meet your medical emergencies, funding of your child's education, marriage expenses as well as for starting or expanding a business.
What makes loan against property different from other forms of loan is the fact that in this one the lender evaluates the current value of the property that you're pledging and disburses a loan amount equivalent to that.
Common Features Of Loan Against Property
1. You can get a loan sanction of amount as low as Rs 10 lakhs to as high as Rs 3 crores by mortgaging your property.
2. The tenure for a loan against property can be between 12 to 18 months.
3. There are highly affordable interest rates that comes with loan against property.
4. You get two different EMI repayment options. You can either follow the traditional method of repayment in which you pay the EMI amount on a monthly basis together with interest rate on you can pay lower EMI at the beginning and higher ones towards the end of your tenure period.
The Proces To Sanction Your Loan Against Property
1. You first have to find out whether you're qualified for loan against property and you can do this by checking your loan qualification with the eligibility calculator. The required details that one must provide for assessment of their loan eligibility qualification are their monthly income as well as expenses, city of residence, date of birth, existing EMIs and the tenure period that one is ready to choose.
2. In the next step you'll need to choose the loan amount you want to borrow by pledging your property. You also get to choose the tenure period.
3. After you've chosen the loan amount and the tenure you're required to fill in the loan application form with details like Name, Date of Birth, PAN, Property Type, Reason for LAP, Property Value, and Required Loan Amount.
4. Once you submit the following documents and complete the loan application the loan approval officers will go through your documents for evaluation and approve the disbursal of the credit in your bank account.
So what's important is you must fulfill the eligibility criteria for your loan approval. Also it is a good form of availing credit since it enables you to get the needed finances without losing your ownership of the pledged property.