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A GUIDE ON EVERYTHING ABOUT LOAN AGAINST PROPERTY

Posted on Friday July 26th, 2019

A loan against property, as the name suggests means for the loan taken against the mortgage of your residential or commercial property, or a plot. Before sanctioning the loan, the market value of your property is assessed and if all the title deeds are found to be clear and are free of any legal encumbrances, the loan money is given as a certain percentage of the property’s current market value. Depending on the lender, the loan amount could range anywhere from 60% to 80% of the assessed market value. The pre-requisite to secure a loan against property from ShubhBank is that there should be no legal encumbrances to the property and the registration of property should be in your name. The end use of a loan against property is not restricted and could be used for any of your requirements provided it is legitimate.

Applying a loan against property can be a great way to avail a loan to meet your financial crunch without selling off your assets. You can get a much larger amount, depending on the market value of the property you mortgage when compared to other loan products.A loan against your property is one of the most popular retail loans available in the market due to its lower rates of interest and higher loan amount disbursal; of course the loan quantum sanctioned depends on the property’s value. You can apply for this loan in any of the banks and NBFCs in India but ShubhBank in the tricity is best providing you online loan against property with great features.

Loan against Property Eligibility
Most of the lenders have a Loan Against Property Eligibility calculator, by which you could determine whether you are eligible or not for the loan.In order to determine your eligibility criteria, the following things will be taken into consideration:
Age and Income
Property’s market value
Any existing obligations
Job stability
Prior repayment history of borrowing

You are eligible to apply if:
You are a resident of India.
You are over 21 years old
You are salaried/ self-employed/ businessman with regular source of income.

Loan against Property Interest Rate
As loan against property is a secured loan, your property is secured as collateral against the loan, so the interest rates are low. It also translates to a higher loan quantum disbursal depending on the property’s current market value. The rate of interest on a loan against property could range anywhere from 11% to 20% per annum or more depending upon the credit score of borrower and a variety of other factors.

How to apply for a Loan against Property
You could visit to Apply For Loan Against Property at ShubhBank for advice on whether you qualify, the documentation needed, and for help in the application process. If you already have a good relationship with our bank, you could be eligible for more favorable offers, like no prepayment / part prepayment penalty, lower interest rate etc. You could call up our customer care and have them contact you with the most suitable offer.