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Posted on Friday November 15th, 2019

A loan against property provides you the capital based on the value of your residential or commercial property. It can be availed by both salaried individuals and self-employed persons. This loan helps you to get funding to meet various personal and business requirements. It can be generally used business expansions, higher studies, and wedding expenses, closing off debts and buying machinery. The loan amount is offered on a certain percentage of the property’s market value usually around 70%-80%. Before applying, there are five factors to consider before taking a loan against property that is discussed below:

• Evaluate Your Eligibility: The eligibility criteria for your loan depend upon the following factors such as age, income source, existing financial responsibilities, credit score and repayment capability and market value of your property. You can also include your spouse or family member as a co-borrower for the loan to improve your eligibility. You need to submit requisite documents that will involve your address as well as income proof and property.

• Choose Suitable Tenure: Loan against property borrowers find longer tenure comfortable but in the long run they end up paying more rate of interest which makes the loan burden for you. Before applying, it is always advisable to understand how much the loan is going to cost you. Always look for the lenders who offer competitive interest rates.

• Repayment option: It is necessary to plan your repayment in advance and have a strategy in place to repay. If you want to pay off your debt in timely manner, you have to make some tough choices. Firstly, it depends upon your repayment option that you chose. There are merits and demerits of every option and the best plan depends upon your income, monthly expenses, and credit score and how much of the amount you want to pay off.

• Co-Borrowers: If the property is linked to multiple owners, they all required being co-applicants while applying for loan against property because it ensures the lender that all owners have agreed to offer the property as collateral to secure the loan. Adding your spouse or child as a co-borrower whether they are co-owners or not helps you to improve your eligibility.

• Read the Terms and Conditions Carefully: Be careful about the processing fee, penalties and add-on charges. It’s not all about to pay the rate of interest only. There are some additional charges like services charges or processing fees. There are also some penalties on pre-payment of loan. Always look after these things while comparing the benefits offered by various lenders. Reviewing it properly helps you in dealing with right lender and always stays cautious about any extra expenses you may incur.

You can apply for an attractive offer on Loan against property From ShubhBank with best possible rate of interest and terms. Just visit our branch in tricity or reach us online at our website to enjoy a smooth journey of loan processing and disbursal.