Things you Should Know about Before Applying for Loan Against Property

loan against property

A loan against property is one of the most popular methods of obtaining a large sum of money to cover any large-ticket expenses. You own a residential or commercial property, you can use it as collateral with a lender to obtain the funds. The loan amount is already secure, the property loan interest rate are competitive, and you can expect favorable lending terms. A loan against property is also known as a mortgage loan. 

Here are some things you should know about before applying for a loan against property:

Mortgage Loan Interest Rates

Both salaried and self-employed individuals can obtain a mortgage loan, and lenders offer competitive interest rates for both. A mortgage loan interest rate can start as low as 8.20% per year and can be reduced even further based on your loan profile and if you meet the lender’s eligibility criteria. The interest rate on a mortgage loan varies depending on the lender.

Loan Against Property Eligibility Criteria

When you apply for a loan against property, the lender will require you to meet a few eligibility criteria in order to determine your financial capability. Some of the eligibility criteria are as follows:

  • The applicant must be between the ages of 20 and 70.
  • The applicant must be an Indian resident and live in a city where the lender operates.
  • The applicant must have a steady source of income, which can come from a business or a job at an MNC, a public or private sector company, or both.
  • The applicant must have a CIBIL score of 750 or higher. 

Loan Against Property Documents Required

When applying, you must submit a prescribed set of documents. It is in your best interest to collect, submit these documents in a systematic and timely manner. In order to receive approval and disbursement of funds without delay. Here is a list of the documents you will need to submit:

  • Identification documents such as Aadhaar cards, PAN cards, passports, and so on.
  • Ration card, property tax receipt, and utility bills are all acceptable forms of identification.
  • Proof of employment or proof of business.
  • Documents pertaining to the property you wish to mortgage.

 Loan Against Property EMI Calculator: A loan against property EMI calculator is a web-based tool that allows you to determine your financial capacity. To know your monthly installments, loan amortization schedule, and total loan amount. You will need to submit a minimum amount of information such as your required loan amount, interest rate & tenor period.

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