Owning a house can be a boon in more ways than just acquiring an ownership. It not only provides you a roof over your head but you can also rent it out for passive income. One of the major benefits of your hard-earned property is that it can also help you to access large amount of funds for your personal needs. It will help you to arrange the funds at short notice when you need to spend it for some personal events such as a milestone birthday, child’s education in abroad or destination wedding and many more.
One of the instant and stress-free ways to arrange cash for these needs is to “Apply For loan against property“. A mortgage loan is a secured type of loan that provides you loan money against your property as collateral. The loan money is disbursed depending upon the different factors including the current market price of the property, debt to income ratio, your income source, repayment capacity and other eligibility criteria defined by specific lender.
A loan against property can be a best remedy to tackle all your personal expenses and events due to its unique and great features which are listed below:
Funds for any purpose: It is one of the major benefits of a mortgage loan that one has the flexibility to utilize the loan amount for different purposes. The mortgage loans in the lending sector are not limited to the specific purpose as they can be used for any of the activity. With the LAP, funds are accessed without any restriction on their usage. Generally, 60-70% of the market price of property is disbursed. However, with the good borrower’s profile, it could stretch to even up to 75%.
Flexible interest rates: The rate of interest is the key factor that influences the decision of taking a LAP. The rates may vary depending upon numerous factors such as type of mortgage you are applying for. Whether you “Apply For loan against property Online“ or offline, rates of interest can range between 10-20%. One can enjoy a smart loan against property interest rates that are flexible with a right credit profile and beneficial loan features.
Extended repayment structure: Unlike other loans, the duration of this type of loan is longer which could go as long as 10-15 years. Hence, you have ample amount of time to earn cash and repay the loan amount without any stress. Choosing extended loan tenure for loan against property helps to lower your EMI leaving you with additional money to spend on achieving other financial goals.
When you apply for a loan against property, you have to upload or submit some documents such as identity proof, income proof and property registration papers along with your loan application. The terms and conditions of the loan will be finalized depending upon the verification and processing of the loan application. It would be good for you to seek an advice from a financial expert to enhance your loan eligibility to get an easy approval on loan against property.