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HOW LOAN AGAINST PROPERTY CAN BE AN IDEAL CHOICE FOR LARGER FUNDING?

Posted on Monday April 12th, 2021

Generally, most of the potential loan seekers do not have much knowledge about loan against property, that’s why people prefer to secure personal loans when they need some kind of funding but if you have a huge requirement and want to secure desirable funds, it’s always good to Apply For Loan against property which saves your money on the interest rate. The majority of people have lack of knowledge about LAP that how it can be taken, what is the interest rate on it, how they can apply for it and so on. Here, we will provide you a brief idea about some of the factors related to it.

Loan against property is a type of secured loan where borrower can secure a loan y keeping their property either residential or commercial as collateral. However, by doing so, one risks the ownership on property which is given as security but if borrower repays the loan without any default then there is no risk at all. Since, you are keeping one of your prized possessions at risk, it is crucial to check everything about loan process so to create no room for any errors. Here, we are listing some points that you should take into consideration before taking LAP.

♦ Interest rate: Once you make up your mind for LAP, the first thing to look after is interest rate comparison. There are innumerable lenders in the market offering loan against property but it’s important for you to choose the favorable deal offered by particular lender on affordable interest rates. Therefore, compare the interest rates between lenders online and choose one that offers you best deal.

♦ Loan documents and payment terms: It is always advisable to read the documents carefully before signing any loan agreement as doing so without proper knowledge can cost you too much in the long run. So don’t make a hurry to seal the deal without checking every document properly, especially, when you are unable to understand the terms and conditions properly.

You can also seek help from a financial expert who lets you understand the fine line that you should pay attention to in your loan documents which involves terms of prepayment, minimum and maximum prepaying amount, any clause that allows the lender to change the terms of the loan and at the end one of the most important clauses after defaulting on a loan.

♦ EMI calculation: Whenever you Apply For Loan against property Online or offline, it is important to calculate your estimated EMI. It will help you to analyze your affordability as well as helps you to plan your monthly budget accordingly. One should not default on paying the EMIs for the loan that you secured against your property. Hence, do calculate your monthly installment to repay the bank and then decide on the loan quantum that you want to take against the property. There are number of lending platforms available online where you can use the EMI calculator to this accurately.

No matter what, a loan against property can be a great way to fund your bigger cash requirement. It’s upon you to utilize this option wisely while applying for LAP.


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WHAT ARE THE ESSENTIALS FOR LOAN AGAINST PROPERTY?

Posted on Monday March 22nd, 2021

Uncertainties in life can come at any time and financial ones are always unannounced where our savings can also fail. Most of the people create emergency funds while imagining the emergency scenarios but sometimes we do not have enough funds which are needed at that time. In such case, you may ask for credit from your relatives or friends or you can opt a loan from a bank. However, friends and family can help you but not with the desired amount then the best way to deal with such situation is taking a Loan against property.

A loan against property is a secured loan to meet your personal as well as business needs by mortgaging your property. The loan can be secured against any residential, commercial property or sometimes agricultural land also. A borrower can get a LTV of 70-75% of the market value of the property. This loan can provides you a larger amount with lower interest rates and there is no restriction on the use of borrowed money.

Understand the Essentials of loan against Property
♦ Interest rate: The rate of interest on loan against property is much lower than other unsecured type of loans as your property act as collateral which assures the lender about the repayment as they have property rights with them. The borrower can also choose from the floating and fixed rate of interest as per their convenience.

♦ Risks involved: In some situation, when you are unable to make the repayments, lender has the right to sell your mortgaged property to recover their outstanding dues from that. Therefore, if you Apply For Loan against property you are always at the risk to lose the ownership of your mortgaged property if you are unable to repay the borrowed amount.

♦ Documents: The papers required to submit or uploaded to avail the loan against property online or offline includes identity proof, address proof, ITR slips, bank statements, property documents in your name, passport size photographs etc.

♦ Eligibility criteria: The eligibility criteria for LAP is same as other loans depending upon the CIBIL score, income, age, qualification, assets and on the organization or employer with whom the loan seeker is working. The loan quantum is only approved when the borrower can meet the set of eligibility criteria set by the particular lender. Once your loan gets approved, the loan money is disbursed either in full or in installments into your provided bank account.

Hence, loan against property is best solution when you need a huge amount of money. It is highly recommended because there is no restriction on the use of borrowed money, from fulfilling your personal emergencies to your business needs, it is just one solution for all. The biggest advantage associated to this loan is you get the funds at comparatively lower rate of interest. It can be availed by both salaried and self-employed professionals and the maximum tenure period for this loan can go up to 15 years depending upon the eligibility and credit profile of the borrower.


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HOW SOME FACTORS AFFECT THE LOAN AGAINST PROPERTY ELIGIBILITY

Posted on Monday October 12th, 2020

The major decisions in life like wedding, education and constructing a house etc. require a great deal of money. There are number of ways to fund these requirements and one of them is to get a loan against property which can be availed by mortgaging property. It is popular among borrowers due to its various benefits and easy processing. The fulfillment of certain criteria is required to be eligible for a loan. Let us examine how some factors affect the loan against property eligibility while borrowing.

→ Age of Applicant: It is one of the most basic eligibility criteria to consider while availing a loan as it determines your repayment capacity. If the applicant is above 60 years old or getting retired soon, the chances of rejection of the application increases. It is always advisable to go for shorter tenure or get co-applicant to avoid missing EMIs.

→ Employment: The professional status and job stability are the key factors for any individual to sanction a loan for all the lenders. The number of years, one is associated with the firm and the monthly salary is assessed to ascertain the borrower’s capability to pay back the loan. If you are prone to switching the jobs, it can leave a negative impact on your financial stability and the chances of approval get decreases.

→ Source of Regular Income: A stable and a sufficient source of income is the important criterion for a lender to sanction an application. The borrower should maintain a stable job or business to earn a stable income if he/she want to Apply For Loan against Property as it determines his/her ability to repay the loan. In case, if the loan EMI exceeds 60% of the monthly income of an applicant, the application gets rejected.

→ Credit Score: This score reflects how effectively a person has been paying his existing EMIs and credit card bills. Most of the lenders look at an applicant’s credit history before approving a loan. Any defaults on the existing loans or late bill payments are reflected in your credit report and can impact your loan application.

→ Slips of Income Tax Returns: However having a stable job and high monthly salary is good but insufficient ITRs can also lead to rejection of loan application. The slips of Past ITR for last 2-3 years ensure a steady flow of income and increase your chances of approval.

→ Property Papers: Either you Apply For Loan against Property Online or offline, the submitted property documents should needed to be authentic and valid. The basic property documents include registrations, building plans, permissions etc. If the property involves some legal turfs or the papers are not in proper order, the application is likely to get rejected.

If these following factors are taken care of and one respects the responsibilities associated with it, loan against property is one of the easiest option to tackle your financial needs. ShubhBank offers competitive rates of interest, flexible tenure, convenient EMI options, low processing fees and hassle free processing on loan against property.


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WHAT BENEFITS SHOULD SHUBHBANK PROVIDES YOU ON LOAN AGAINST PROPERTY?

Posted on Sunday May 17th, 2020

Planning to buy a branded car or planning to get a new home somewhere or thinking to expand your business to achieve more success in corporate sector. So much to do in list, but funds is constantly stopping you from going further in life. There are certain financial problems which you face in your life and can be the most stressful thing happens to you. But, don’t freak out as ShubhBank have an option for you that is loan against property. Haven’t planned taking a loan against property or haven’t heard about it before that how could you execute it or how will it be beneficial for you? Here, the answers to all your doubts will be cleared. A loan against property is a secured loan, which involves your property as collateral for security purpose. The Loan against Property at ShubhBank is popular because of its perceptible benefits. Higher loan quantum is generally available for longer tenure when compared to other secured loans, and at an attractive interest rate.

To avail this loan, you will be providing your owned residential property or commercial property to the lending institution in which you’ll be applying. Applying a Loan Against Property at ShubhBank is as convenient as they required minimum documentation, and the interest rates are quite lower than other conventional loans. As convenient as these loans are seen, but they come with certain guidelines which you need to make sure before applying such as the property which you are pledging as collateral should be owned by either you or family, property should be in good condition, and also it should be registered with the government processing. Now, let’s see what benefits should ShubhBank provided you on loan against property to fulfill your requirements.

1. These loans are easy to get from various lending institutions either NBFC or bank. As these are secured loans, the lender feels safe to provide you the funds as they get the benefit of having your property as pledged security.

2. This loan will get you the benefit of prepayments, which means you can close your loan amount before the tenure ends. In these kinds of loans, most of the lenders generally don’t ask for charges while closing loan against property.

3. You can avail the benefit of having access to lower EMIs as the tenure for the loan against property is high, and the rate of interest is low. This option is beneficial for those people who can’t afford a high amount of monthly installments but borrowers who can pay a high amount to repay can opt for shorter tenure also.

4. The longer tenure will provide you the ease of repayment that can’t pay off the heavy amount of EMIs every month. The tenure for this loan can be extended up to 10-15 years depending upon the lender and your eligibility.

Loan against property provide you the funds that help you to fulfill all the plans, you wished for but couldn’t execute due to lack of finances. Now Apply For Loan Against Property to easily plan your dream vacation, destination wedding or send your child abroad for higher studies.