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WHAT IS THE PROCESS FOLLOWED FOR LOAN AGAINST PROPERTY?

Posted on Monday July 18th, 2022

Loan against property is a secured type of credit solution that can be availed for any need and there are no restrictions on the end usage. This loan has same features and functionality as that of Personal loan but has some of the major differences such as you can avail higher loan amount against property, need to pledge your own property as collateral and has a longer tenure.

When you Apply For Loan against property you need to pledge an immovable property whether residential or commercial property as security against loan. The processing of LAP is bit different as it requires additional verification and checks before approving the loan application. In this blog post, we have mentioned followed steps involved in the LAP processing:

Fill out the loan application: It is the first step to process the mortgage loan where one has to start filling out the loan application that requires your basic details such as personal information, income details, tax status, property details, and loan amount as well as employment status. Make sure to fill all the columns without making any mistakes because a small error will be responsible for the rejection of your loan.

Confirm the details: Once you have applied for Loan against property, a loan representative from the lending institution will call you to verify your KYC, residential address as well as do initial property verification. After confirming the details, your loan application will be processed to next step. This check is done to ascertain your loan eligibility to approve the loan.

Submit the required documents: This is the most important step in the approval process as you need to submit or upload all the required documents that involve KYC details, income proof, residence proof, ITR slips, property documents and other papers asked by the lender. Make sure to submit the latest documents and property should be free from any litigation.

Document verification: After getting all the documents submitted, the lender will conduct a verification check of all the provided papers. Although there is no restriction on end-usage of loan money but verification is done to ensure the loan quantum will be paid back timely. A lender will also evaluate the property papers to finalize your loan amount depending upon their policies.

Approval: Following a successful verification, lender will contact a borrower to discuss the rate of interest and other terms and conditions. Either you Apply For Loan against property Online or offline, you have to sign the loan agreement to get an approval on your loan application. Then your loan will move to final step of disbursal where your loan money is transferred directly to your bank account within 1-2 business days.

A Loan against property is suitable for fulfilling any type of financial requirement whether it is personal or professional. The LAP process is straightforward and the interest rates are lower as compared to a Personal Loan. In case you have any doubt or query about mortgage loan processing, you can raise the issue directly with the lender before applying for loan.


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WHICH PROPERTIES CAN BE PLEDGED FOR LOAN AGAINST PROPERTY?

Posted on Monday June 20th, 2022

A Loan against Property is the most preferred type of secured loans these days. It is a secured loan where borrower has to pledge his/her property as collateral to lender in exchange of loan money. When you Apply For Loan against property the lender gets security for lending cash to the borrower, therefore mortgage loans have lower rate of interest.

However, there is a myth that one can pledge his/her residential property to avail a loan against property but here in this article, we will guide you about different types of properties that can be put as security to secure a mortgage loan:

Residential property: This property is one’s personal place of residence and permanent stay. It may include a flat, building, villa, mansion or even a vacant land. One can pledge his/her residential property whether it is self occupied, rented or vacant. You can mortgage your property as long as it is registered in your name. Thus, pledging your property with lender ensures a lowest possible interest rate as well as flexible repayment tenure.

Commercial Property: It is a type of property that can be used for other purposes than residence. When these properties get used for business purposes and starts generating income for you, then they get qualified as commercial property.

The property might include school, offices, gyms, warehouses, hospitals, retail stores or any other factory outlets. Borrowers can pledge vacant or rented commercial properties as long as they are free from any legal dispute on ownership as well as title existing on the space.

Co-owned Property: As name reflects, it is the property that is owned by two or more individuals. One can pledge this property if he/she is a co-owner but they have to get other co-owners on board to sign the loan application. It is easy to secure a mortgage loan for married couple as lender considers marriage a contractual relationship in terms of law. It is good to talk lender beforehand, if you want to apply for loan against property for a co-owned property.

Industrial Property: These are the properties which are used for manufacturing and developing units or for the production of goods and products. Any individual can pledge an industrial property for loan against property, but the approval on application varies from one lender to other. Some of the lenders do not consider the industrial spaces as security while others do.

Now when you know the different types of property for mortgage, you can move further to understand which type of space fulfils your eligibility and fits your pocket. One can use the loan money for different activities such as higher education, wedding expenses, medical emergencies or high interest debt consolidation. You just have to submit the original property papers at the lending institution until you repay the loan.

At ShubhBank, anyone can Apply For Loan against property Online or offline irrespective of residential, commercial or industrial spaces because we keep your interests at heart and offer you best possible rates of interest, high loan value, flexible tenures and zero hidden charges.


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HOW LOAN AGAINST PROPERTY AND FINANCIAL ASSETS HELP IN LOAN?

Posted on Wednesday May 18th, 2022

It is rightly said that every cloud has silver lining, as loans fall into the same witness box. Sometimes loans can be weak sauce but if they are managed properly, they can be really advantageous. This credit will help you to achieve your financial goals as well as fulfill your requirements. The more you borrow and repay timely, your creditworthiness increases and you become mature in eyes of lenders.

There are certain types of assets that can aid in meeting your personal and professional needs. It can be any immovable property, precious metal, mutual funds, securities and FDs etc. one can access a loan against any of these monetary resources to satisfy your needs. If you want to borrow against any residential or commercial property, you can Apply For Loan against property where if you are borrowing against financial assets, you can avail loan against securities.

Loan against Gold: It is one of the most popular types of loan availed by Indian people. Nowadays, this yellow metal is precious and regarded as a haven in lending market. The popularity of this loan is due to its repayment as it has two methods, one is simple EMI method where only interest rate is charged and other is bullet method. A maximum of 80% of loan money can be availed from the gold value depending upon its purity.

Loan against PPF: Public provident fund is an asset as well as tax saving term backed by the Indian government. These funds can be used as collateral for availing a loan which is tax free and having higher ROI than fixed deposit. It helps to access 25% of the maximum amount but this credit can be availed on condition of having an account opened from last 6 years.

Loan against Fixed Deposit: The loan against fixed deposit is considered to be a safe investment and is quite common among individuals. One can avail up to 90% of the FD value but the term time cannot exceed from the fixed deposit term time. Anyone above the age of 21 years can apply for such loan. However, it is risk free for lenders as there is no effort to change its state if borrower defaults on loan repayments.

Loan against Property: It is a multipurpose loan used for fulfilling various needs of business, education and personal expenses etc. You can avail up to maximum of 70% of the market value of the property depending upon applicant’s eligibility for tenure of 2 to 15 years. Before you Apply For Loan against property Online or offline, make sure your property should be free of any litigation and you have a stable income.

Hence, you can avail a loan in many ways these days but you must be smart to choose the loan product wisely as you have to stick the agreed repayment schedule so that the assets you pledged against the loan should remain secured. You can apply for Loan against Property from ShubhBank and avail the great deals and offerings along with competitive interest rates.


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WHICH QUESTIONS ARE ASKED ABOUT LOAN AGAINST PROPERTY?

Posted on Monday April 25th, 2022

Loan against property is a secured type of loan offered by lending and financial institutions for multi-purpose utilization while holding your owned property as security. The property owned by you is to be pledged as collateral for which you can obtain cash for up to 70-80% of the market price of the property. The major benefit associated with this loan is that you can continue using your owned property for any purpose.

People who plan to Apply For Loan against property might have some questions to ask about this financial tool which we have tried to answer to clear all your doubts.

What is the difference between Loan against Home and Loan against Property?
However, home loan is also a secured loan provided by lending institution to buy a residential property but Loan against Property is a multi-purpose financial solution which is availed by pledging their property to access the funds for anything varying from funding your children’s higher education to the expansion of your business.

What are the benefits of Loan against Property?
A Loan against Property can be availed at lower rate of interest than any Personal Loan. Moreover, funds available with LAP are much higher than any other personal loan and can be availed for much longer tenure. It must be noted that interest rate and tenure of loan available to you depends upon number of factors such as monthly income, loan quantum, property evaluation etc.

In addition to that, lenders also charge a low processing fee on loan disbursed against residential or commercial property as compared to other unsecured loans.

What are the eligibility criteria for LAP?
The eligibility criteria for Loan against Property will vary from one lender to other but there are some common criteria. This loan can be availed by any salaried or self-employed individual and you can also add co-applicant as in close relatives, friends or partnership firms. The main applicant must be at 21 years of age and should be a resident of India. Also, you must earn a certain amount of salary that ensures your repayment capacity to repay the EMI payments.

What type of properties can be pledged?
There is common myth that a loan can only be secured in lieu of residential property but lenders offer loans on myriad of properties, including commercial or residential property. Even a vacant land that has not been constructed yet can also be pledged as security to get the funds. Depending upon a specific lender, a borrower can access about 70-80% of the market price of property when they Apply For Loan against property Online or offline.

What paperwork is required to apply for LAP?
The documentation also varies from lender to lender and depends upon borrower whether he/she is salaried or self-employed. Generally, one needs to submit Identity proof, residential proof, salary slips as well as income tax return slips etc. moreover, lender might ask for credit report, balance sheets and educational qualification amongst documents. Keep all these documents in hand to get easy approval on Loan against Property.


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HOW LOAN AGAINST PROPERTY IS BEST FOR FUNDING YOUR EXPENSES?

Posted on Monday February 28th, 2022

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.


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HOW MORTGAGE LOAN CAN BE AN IDEAL CHOICE FOR LARGER FUNDS?

Posted on Monday December 13th, 2021

It is obvious that most of the loan seekers do not have much knowledge about loan against property which means whenever they are in need of funds, they avail Personal Loans. These loans are ideal when your financial requirement is loan but if you are looking for larger funds, it is always better to apply for mortgage loan as it saves your money on the rate of interest.

The main reason behind LAP gets ignored is the lack of knowledge among common people. The majority of individuals don’t know how to avail a loan against property, what is the interest rate, repayment terms and so on.

Loan against property is a type of secured loan which can be secured by pledging your residential or commercial property as security to avail the desired funds. As this borrowing involves pledging your prized possession with lender, so it is necessary to be careful about the entire loan procedure. Here, we will be providing a guide for loan against and property and some important points that should be taken into consideration:

Compare the interest rate: Once you finalize to secure Loan against property, the first step which should be taken is comparing the interest rate. There are number of lenders present in the market offering LAP but you should choose a favorable deal on affordable interest rate. You can easily compare the interest rates online offered by different lenders, so that you can pick a loan scheme at an attractive rate and EMI.

Comprehend the stakes: Besides interest rate, it is equally important to know the worth of the property that you are going to pledge to the lender. The real estate market is on upswing, so evaluate your requirements and then pledge your asset as security. If you understand the worth of your property, it will help you to secure good loan money. Nowadays, most of the lending institutions generally offer a loan quantum up to 75% of the market value of the property.

Be careful about documents and loan terms: Before signing any loan agreement, it is advisable to go through the loan papers carefully because sometimes, your ignorance can cost you too much in future. Don’t be in hurry, if you are unable to understand the loan terms then seek a help from financial expert. Read the terms carefully about the minimum and maximum amount of prepaying and clauses after defaulting on loan.

Calculate the EMI: It is really important to know your equated monthly installment before you Apply For Loan against property Online or offline to analyze your affordability which helps to plan your finances accordingly. One should not miss out his/her EMIs of loan as it will let your property be at risk of auction. Therefore, calculate your installment according to your repayment capacity then decide on loan amount that you will secure against property.

A loan against property is an easy way to fund your financial crunch but it is your responsibility to utilize this option wisely and apply it when you are sure about repaying the loan easily.