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WHICH THINGS TO CONSIDER BEFORE YOU APPLY FOR LOAN AGAINST PROPERTY?

Posted on Wednesday February 15th, 2023

Most of the people look for borrowing a loan during financial emergencies and can choose from a variety of lenders to do so. However, getting loan a loan can be a time consuming process time and detailed documentation but availing a Loan against Property from ShubhBank is an easier way out because of some of its advantages.

It is worth understanding that how this loan works before you Apply For Loan against Property as you avail the credit in exchange of your property. Always keep in mind that the pledged property can be residential or commercial and a borrower can continue its ownership even after pledging it to lender until and unless he/she defaults on loan repayments.

A loan against property is always considered to be better option for property owners because it is cheaper than any unsecured loan and offers big chunk of money that can fulfill your all financial needs. However, LAP is a popular choice among borrowers but before availing such loan, one must consider three things prior to applying it.

In this blog post, we have mentioned those three things about loan against property in detail:

• Value of the Property: Your property is considered to be an asset and asked to be pledged as collateral in Loan against Property which means that the loan money offered by lender is directly based upon the valuation of your property.

In addition to that, a borrower must understand the value of their property before getting a mortgage loan, taking into account factors like their age, income, location as well as amenities.

• Compare interest rates and features offered by lenders: However, several lenders in the market offer Loan against Property with attractive rates, features and advantages and it may vary from one lender to lender. Being a potential borrower, one should research and compare various interest rates offered on LAP by different lenders before finalizing the one that fits you the best.

Moreover, it is good to check the required documentation for Loan against Property as well as for the online loan application. Furthermore, check if the lending institution provides quick loan processing and balance transfer as this can help you in making an informed decision.

• Time of repayment: Apart for the different interest rates offered by the lender on Loan against Property, it is crucial to consider your overall duration of loan repayment.

Any reputable lending institution will almost provide flexible tenure up to 15-20 years. A longer tenure means lower EMI payments where as a shorter tenure means large EMIs that repay the loan faster. Therefore, choose your loan tenure wisely.

Hence, taking out a Loan against Property is a great way to access the required funds being a property owner. It will not only allow you to get the large loan quantum but also get to keep your property in question. ShubhBank understand your loan concern and needs well, so you can Apply For Loan against Property Online to get the best value and benefits with flexible repayment terms as well as with hidden charges.


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WHICH ESSENTIALS YOU CAN’T AVOID WHILE APPLYING LAP?

Posted on Monday January 16th, 2023

Nowadays, inflation has affected most of the people financially which is too difficult to handle without any monetary aid. It can be resolved either by borrowing from friends or relatives or availing different loan products from financial institutions as per your requirements. There are various lending institutions that offer several types of secured and unsecured loans as per borrower’s need.

As far as you are concerned about the security of loan, you can apply for Loan against Property as you could access this financial product on residential as well as commercial property. One can also get the benefits of online loan against property from the comfort of your personal space. You can avail this loan at ShubhBank by submitting the required documents to complete the application process.

Before you Apply For Loan against property and submit all the required documents, consider some of the essentials that you can’t avoid for LAP:

→ Valuation of the Property: We have already mentioned that different type of residential and commercial properties can be mortgaged with the lender to avail Loan against Property. Remember, lender will evaluate the value of property to be pledged based upon the current market price.

A lender will sanction you the loan money up to 70% of the current value of the property upon the submission of needed documents. However, the valuation of property may differ from one lender to other.

→ Interest rate: The interest rate on Loan against Property is much lesser as compared to other secured and unsecured loans, so it’s better to do a market research of lenders and compare the proposed interest rates offered by different institutions. Moreover, various lending institutions charge different interest rates, so don’t rush for availing a quick loan.

→ Loan repayment tenure: Generally, the lenders provide longer duration to the borrowers for the repayment of Loan against Property. Sometimes, the loan tenure differs from one lender to other but being a responsible borrower; one has to maintain a balance between repayment period and monthly installments. The longer tenure will result in shorter EMIs ultimately reducing your loan burden.

→ Processing fees: Every lending institution charge the processing fees according to their lending norms which usually ranges from 0.5 to 2% of total loan amount. Therefore, it can’t be assumed solely based upon rates of interest. It is better to consider processing fees beforehand while availing a Loan against Property.

→ Ownership of the Property: The ownership of the property whether it’s residential or commercial should be clear. If you have disputed title of property in your name or incomplete documents then your loan application will get rejected. In case, you have a joint property then the consent of all the owners is must for getting a Loan against Property.

Hence, it is good to Apply For Loan against property Online or offline to cater all your financial needs but try to choose a lender who offers the best loan deal that suits your needs. ShubhBank strives to understand the borrower’s requirements and offer best value and benefits on Loans against Property.


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WHY LOAN AGAINST PROPERTY IS FINANCIALLY BENEFICIAL?

Posted on Friday December 16th, 2022

Loan against property is a financial tool offered by lender to provide funds to a borrower in exchange for property as collateral. Every financial institution will lend you money on the condition of pledging your property till the repayment of the entire loan amount. Additionally, lender keeps the original documents of pledged property until the borrower repays the whole amount.

When you APPLY FOR LOAN AGAINST PROPERTY and pledge your property to the lender, then the institution has right to use your property for auction in case of non-repayment. However, there is some risk but there are several financial benefits associated with this loan. Here, we will list the benefits of Loan against Property that will help you to figure out if it’s ideal choice for you.

→ High loan amount: It is numbered as top benefits of mortgage loan that you can get a high loan sanction amount. However, the loan amount depends upon the market value of the property to be pledged. Most of the lenders offer 75-80% of the market value of pledged property for the entire loan tenure. Moreover, the sanction amount is decided according to loan to value ratio.

→ Competitive rate of interest: Being a secured loan, the lender has surety that they have borrower’s property as backup in case of any default. Therefore, lending institutions offer Loan against Property at reasonable rates of interest as compared to other unsecured loans. Usually, the interest rate varies from one lender to other.

An affordable interest rate ensures the borrower to enjoy the benefits of loan against property and eases the financial burden of paying huge EMIs every month.

→ Minimal foreclosure charges: It is one of the core benefits of mortgage loan where you can enjoy the minimal to nil foreclosure charges. However, the financial institutions levy 2-4% of outstanding principal amount for the early repayment or closing the loan before its tenure but in case of Loan against Property, most of the lenders do not charge any fees or ask for nominal percentage.

So, it is advisable to ask your lender before you APPLY FOR LOAN AGAINST PROPERTY ONLINE or offline if there is any charge payable or any hidden fees regarding foreclosing a loan.

→ Tax benefits: This is another benefit of a loan against property where you can also get the tax benefits by accessing the loan. A salaried employee can claim the tax benefits on the payable interest under the Sec 24 of the Income Tax Act 1961. The tax advantages don’t levy upon the principal amount.

Hence, now you are aware of the several financial benefits of Loan against Property but always do a proper research about the lender’s credentials because you are going to be in relationship with your lender for a long term. Always go for the reputed lender whom you can trust easily as you are pledging your valued asset with them.

Get a Loan against property from ShubhBank as we always go extra mile in providing your desired loan amount at competitive interest rates with no hidden charges to make your loan journey easy.


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WHAT CHECKLIST TO MAKE BEFORE GETTING A LOAN AGAINST PROPERTY?

Posted on Friday November 18th, 2022

It is true that most of the individuals don’t know much about Loan against Property and end up availing Personal Loan whenever they need financial aid. Personal Loans are good when you need low amount of funds but if your requirement is huge then you can, it is always better to Apply For Loan against property as it helps you to get desirable amount and also saves your money on the rate of interest.

One of the main reasons why Mortgage Loans get ignored is lack of knowledge about them in common people. The majority of individuals don’t know how a LAP is availed, what are the interest rates charged on it, how they can apply for it and so on. Therefore, this blog post is to clear all your doubts about Loan against Property as we will guide you about the loan and checklist to make before getting a LAP:

Compare the interest rate: Once you decide to avail a mortgage loan, the first thing which you should consider is comparison of interest rate. There are so many lenders in the market who are offering Loan against Property but try to choose one that offers you favorable deal with affordable interest rate. One can compare interest rate online between different lenders and select that offers you easy application and reasonable rates.

Pay attention to the loan: Before signing any loan agreement, it is always wise to read the terms and conditions carefully but only a few people this step properly. However, not having a proper awareness can cost you much in future. So, don’t sign any loan document in hurry and look upon every paper carefully. Moreover, if you are unable to understand the terms, you can always seek help from financial expert.

The things to check in loan agreement include terms for pre-payment, clause that allows lender to alter the conditions of the loan and last but not least is the clauses after defaulting on loan.

EMI calculation: It is really important to know your estimated EMI before getting any loan. It not only helps you to analyze your repayment capability but also helps you to plan your budget accordingly. The one thing to be aware of is never miss out on repaying the loan that you took against property because your property is on risk of auction if your default on loan for any reason. One can use an EMI calculator to know the right amount of monthly installment.

Hence, Loan against property is a secured type of financial tool where borrower gets a loan by pledging their commercial or residential property as collateral to the specific lender. One should utilize this option wisely and Apply For Loan against property Online or offline when he/she is sure about their repayment capacity as by taking this loan, you risk your ownership of the property which is pledged as collateral. At the end, we can say that Loan against Property is a great way to avail a bigger cash to handle your financial crunch.


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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.