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WHAT TO REVIEW WHILE APPLYING FOR LOAN AGAINST PROPERTY?

Posted on Monday October 17th, 2022

As the name reveals, Loan against property is a secured form of loan provided by lender against any immovable property. A borrower can mortgage his/her residential or commercial property as security to procure the loan money. The loan quantum varies from one lender to other and can be compromised around 70-75% of the property’s market value. It is good to keep in mind that when you Apply For Loan against property you need to repay it in EMIs in fixed tenure.

A Loan against property requires collateral so one has to keep the property papers as security with the lender. In case you default on loan for any reason, then your pledged property rights will be transferred to the lender. Therefore, make sure to pay the monthly installments on time without any delays or interruption. To make the loan journey easy, one should review few points while applying for a loan which is mentioned below:

✓ Repayment period: The repayment of a loan is most important factor as it impacts your creditworthiness. However, mortgage loans are secured type of loans; lending institutions usually offer a longer repayment tenure which could go up to 15-20 years depending upon the age of borrower, income and eligibility criteria.

✓ Loan quantum: The other key factor is the loan money which will be disbursed to you to fulfill your financial needs. Since you have pledged your property with lender so higher loan quantum will be offered depending upon the market price of your property. Before approving your loan money, the loan officer will evaluate your property’s value, income, past payment history as well as credit score.

✓ Rate of interest: The next thing to look upon is interest charges because the rates are lower in the case of Loan against property. More secure will be the loan, lesser will be the rate of interest and vice versa. When the lender has less monetary risk, they can offer you a lowest possible rate of interest depending upon the principal amount.

✓ Loan processing time: Unlike unsecured type of loans, the secured type of loan such as mortgage loans take time to process as lender needs to evaluate the property papers and its worth depending upon the current market value. This due diligence ends up extending the time needed in processing the Loan against property.

✓ Eligibility criteria: It is one of the main factors that decides whether your loan will be approved or not. Once you meet the eligibility criteria that involve age, income as well as credit score then lender will disburse the loan money directly to your account. The lender also provides you the quality services after you Apply For Loan against property Online or offline as the loan journey could continue for up to 15-20 years.

Hence, Loan against property offers you numerous advantages such as lower interest rate, longer repayment period, higher loan quantum as well as greater flexibility; you will find it the much easier and convenient option to tackle your financial crisis. It is kind of credit solutions that offer needed funds as well as post disbursal services.


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WHAT TO LOOK AT BEFORE YOU APPLY FOR LOAN AGAINST PROPERTY?

Posted on Monday September 19th, 2022

Nowadays loan against your residential or commercial property is a best way to raise lump sum cash. You are free to use the loan amount for any wedding event, business expansion or home renovation etc. It is an outstanding option to utilize the value of your property to meet any financial requirement. One can Apply For Loan against property and can mortgage his/her property by meeting up the eligibility criteria asked by the specific lender.

The loan amount, interest and tenure can vary from lender to lender depending upon the value of your property as well as credit worthiness. It is good to assess your financial situation before getting a loan. Here, in this blog post we have prescribed some points to look at before availing a Loan against Property. Let’s go through these points:

⇒ Assess your financial profile: One can start it by consolidating their total income and total debt including your rent, insurance premiums, children’s school fees etc. one you find the difference between two, you will come to know what you left with to pay an EMI for a new loan. There are number of lending platforms that provide EMI calculator to understand your potential. You just need to enter your desired loan amount, tenure and interest rate; you will get your EMI.

⇒ Loan repayment period: Everybody needs to fix their repayment structure judiciously. Any individual gets tempted to pick longer tenure and shorter EMIs but one must be aware that you will end up paying higher rate of interest making your borrowing cost higher. Therefore, it is good to know your EMI capacity so that you could minimize your repayment period.

⇒ Never delay your EMIs: When a borrower delays their monthly installments, lender may levy a penalty which also adds up to your loan cost. Moreover, delayed repayments can affect your credit report adversely. It is always good to be disciplined with your payments to maintain your credit profile.

⇒ Convenience: Time is priceless and crucial factor in any transaction, so one should always look for a lender with whom you can Apply For Loan against property Online rather than wasting your time by visiting a branch with pile of papers. ShubhBank offers an online lending platform which is a convenient way to avail a loan. Visit our website and click on “Apply Now” for loan against property and upload your details to submit your application.

⇒ Right lender: Any potential loan seeker should choose a lender after checking some important parameters because applying a loan with multiple institutions can hinder your credit score which can lead to loan rejection. ShubhBank is a renowned lending platform that offers loans with complete transparency and has a smooth operation with speedy loan processing. It would be a wise decision to choose an authentic lender with easy eligibility criteria.

Hence, after going through these points, you must be aware of the fact that these things are extremely important to make any informed decision regarding mortgaging your commercial or residential property to fulfill your personal or professional needs.


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WHY TO FUND YOUR FINANCIAL GOALS WITH LOAN AGAINST PROPERTY?

Posted on Monday August 22nd, 2022

A loan against property is categorized under secured type of loans where you kept your residential or commercial property as collateral against the loan money. The quantum of loan depends upon the market value of the property which is about 70-80% of the overall price. Lap can be availed by both salaried persons and self-employed individuals as it fall under secured category.

You can Apply For Loan Against Property and utilize it for various purposes as per your needs like home renovation, wedding expenses, business expansion as well as higher education. In this blog post, we have listed some of the reasons that how beneficial is to fund your financial goals with loan against property:

Higher loan quantum: As we mentioned earlier, your property valuation decided the loan amount but the quantum is much bigger as compared to other secured loans such as Personal Loan. It will allow the borrower to unlock the potential of their property and get higher loan amount.

Minimal interest rate: The interest charges on LAP is comparatively lower as it is a secured loan and results in lower EMI and interest outgo for the borrower. If you are seeking a loan with big ticket size and loan tenure, it is better to avail loan against property as it is one of the convenient option and easier to be repaid.

Longer repayment period: The repayment period under mortgage loan can be up to 10-15 years whereas in case of Personal Loan, it will be only for 5-6 years. The longer tenure will help you in easing out the financial burden on you. Some borrowers also prefer to get a LAP because it offers the flexible repayment structure.

Easy eligibility: Being in a category of secured loan, the eligibility criteria for loan against property is very simple for both the salaried and self-employed individuals. Some lending institutions such as ShubhBank also provide doorstep services to their borrowers along with easy eligibility criteria.

Easy repayment: Most of the lending institutions offer you great flexibility with LAP. In this loan, you get a sanction particular amount on the basis of property price but you only have to pay the interest on the money you take as a loan out of the total sanctioned funds. This way you can align your loan repayments and other financial goals in a better way.

Foreclosure and repayment charges: As this loan scheme falls under longer repayment period and big ticket size, so most of the lenders do not levy extra charges on prepayment. It makes the closing of loan easy and stress-free as compared to other loan solutions otherwise, foreclosure or prepayment charges can burn a hole in your pocket if you try to reduce your debt burden.

Hence, these are some of the benefits that one can get after they Apply For Loan Against Property Online or offline to fund their other financial goals in long run. ShubhBank is known for offering loan against property at affordable interest rates with nominal documentation as well as with quick and easy approval process.