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WHAT ARE THE CHARGES ON LOAN AGAINST PROPERTY?

Posted on Monday December 14th, 2020

A loan against property is one of the most popular loans as it is easy to use and can serve as a needful source of financing. Therefore, in order to manage your finances efficiently, you must keep in mind about the charges applicable on your loan against property. It will give a clear picture about the total cost of taking mortgage loan and will help you to layout a budget for the repayment of loan. So, have a look on various charges that are applicable on your loan against property.

Interest rate: The rate of interest is the cost at which the particular financial institution extends credit to you. The calculation is made on the total amount that one borrows for the tenor for which he/she is taking the LOAN AGAINST PROPERTY and interest rate is calculated annually which is added proportionately to every monthly installment.

Processing fees: It is also known as application fees used to cover administration costs, credit check costs and property appraisals and so on. This amount will be deducted from the total borrowed amount before it is disbursed to the borrower.

Charges on statement: Most of the lender will charge you for interest, principal statements as well as loan statements that help you monitor the progress of loam. It is sent to you in the form of hard copy covering the cost of printing and sending them to you. You can avoid such charges by switching to online loan process. One such lender is ShubhBank, which offers digital lending platform and access to all loan related statements at your convenience.

Penal interest: In case you default a loan or fail to make EMI payments, you have to pay penal interest. It is calculated on a monthly basis and charged over and above the interest rate. So, it is advisable to plan your repayment in advance to avoid paying such charges.

Part prepayment charges: If you got a bonus or saved enough to make part prepayment towards the principal amount to repay the loan fast then lender may levy a prepayment charge. Before you APPLY FOR LOAN AGAINST PROPERTY ensure yourself to choose a lender with low or zero prepayment charges to make the most of it.

Foreclosure charges: It involves paying off the entire loan money in one go before the completion of the tenor. Likewise prepayment, foreclosing the loan also attracts a charge too. It is always good to choose a financial institution that has a low foreclosure charge to make repayment simpler.

Secure fee: Some of the lenders impose a secure fee to ensure security for your transactions and sensitive information in a manner they deem necessary. It is done to keep your online account and data safe.

Hence, whenever you are in need of loan against property, don’t choose just by looking at a low interest rate. Therefore, choose a ShubhBank which gives you ample funds at a nominal interest along with unhidden charges when you pledge your commercial or residential property with us.


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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 ARE THE ESSENTIALS OF LOAN AGAINST PROPERTY?

Posted on Wednesday September 9th, 2020

Loan against property is much like any other type of loan in which lender promises you to give the funds by keeping your commercial or residential property as collateral. This concept is gaining popularity among loan seekers as large sum of money gets easily arranged by this. Loan against property offers great features such as easy documentation, faster approvals and flexible repayment options. It means one can apply for a loan from any lending institution by extending his/her property as a security. This is type of mortgage that involves a ‘transfer of interest’ and the ownership of the collateral remains with the borrower. Here in this article, we will tell you about what are the essentials of Loan against Property and why it is attractive as compared to conventional loans. Mortgage loan is convenient as it offers higher loan amounts at discounted interest rate accepting both residential and commercial properties as security. Its major benefits are:

• Large quantum can be financed.
• Lower rates of interest as compared to other loans.
• Longer tenure resulting in low EMIs.
• Efficient financial tool for debt consolidation.
• Multipurpose use either personal or business.

The lender may also ask for KYC documents to validate the eligibility criteria which may consist of:
• Address proof.
• Identity proof.
• Property Papers(Residential/Commercial/Industrial/Plots).
• Salary slip if you are salaried.
• Certified financial statement for last 2 years if you are self-employed.

The approval of loan depends upon borrower’s credit score along with other factors such as age, income, the number of dependents, assets and liabilities. Once you Apply For Loan against Property the lender will evaluate your eligibility depending upon given factors and luckily, if get approved for loan, the amount is disbursed in full or in installments in the bank account of the borrower. One can have choice to pick the type of interest rate either fixed or floating. The quantum of loan extended to the borrower is evaluated on the market price of the property, you pledged to the lender. It is important to keep the fact in mind that every lending institution always holds a certain amount of money and disburse a maximum of 70% of the market value of property. This ensures the lender against any cyclical fluctuations is real estate prices or in case, borrower default on installments.

Loan against property is great financial tool to meet your personal and business needs as there is no restriction on its usage. Many people use mortgage loans for funding children education in abroad, to buy or build a second property or even for business purposes. Putting your property at stake is a serious decision, so go ahead for loan after comparing the different lenders on their websites as many of them offer online loan against property with great benefits and features. The LAP should not be used as risk capital because it has high chances of losing your property to lender, therefore, apply it only when you know that you are able to pay back the loan amount in the fixed period.


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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.


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FIVE FACTORS TO CONSIDER BEFORE TAKING A LOAN AGAINST PROPERTY

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 ShubhBank.com to enjoy a smooth journey of loan processing and disbursal.


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LOAN AGAINST PROPERTY ON POSSESSION: THE BEST WAY TO FULFIL MONETARY NEEDS

Posted on Monday September 10th, 2018

Getting LAP for buildings is gaining popularity rapidly. Through the LAP, people can raise their financial resources. Banks or financial institutions typically offer financial resources on your assets. You can take credit from banks on the rented, unused or an occupied property.


Getting your grounds financed is one of the best alternatives if you want to raise up capital. It is disbursed according to the market value of your asset which is normally between 50 per cent to 65 per cent. It is a secured loan type where there is a guarantee given by the borrower who makes use of the resources as a backing security.


You can use your possessions to get funding from banks or money lending companies in order to meet varied business as well as personal requirements. The credit taken on the buildings is used mainly to fulfils wedding expenses, business expansions, buying machinery, higher education and closing off high-cost advances.


Purposes of getting the buildings or resources credited –

It can because of the following reasons people opt to get cash on behalf of their belongings-
● People often take a loan in place of their assets to expand their business.
● Sending their children abroad for higher studies.
● Funding dream vacation
● Funding medical treatment
● Getting their daughter/son married


Eligibility criteria –

One need to accomplish a specific set of eligibility criteria for getting their possession credited. Though, it may vary from one money lending company (bank) to another. Here is the list of some common “Loan Against Property Eligibility” factors that all financial institutions look at-

● Income, savings or debt obligations.
● Value/cost of the mortgaged building.
● Repayment record for credit cards or other borrows etc.


Required documents –

A smooth and simple documentation process eases the borrowing exercise. Most financial institutions or banks usually require some common and important documents in order to transfer particular types of credits. Here is the quick list of loan against property documents required:


1. For salaried customers

● Application form with photograph
● Identity proof
● Residence proof
● Bank statements of last 6 months
● Income proof
● Processing fee cheque


2. For self-employed professionals

● Application form with photograph
● Residence proof
● Valid Identity
● Required education qualifications certificate
● Proof of business existence
● Profit/loss and balance sheet of the last 3 years
● Past 3 years income tax returns
● Last 6-month bank statements
● Processing fee cheque


3. For self-employed businessman

● Application form with photograph
● Residence and identity confirmation
● Business existence proof
● Certification of educational qualifications
● Income tax returns of last 3 years (business and self)
● Profit/loss statement and balance sheet of last 3 years
● Last 6 months bank statements
● Processing fee cheque


Advantages of loan against property

Some of the favorable advantages of taking such financial help are mentioned below-

● Lower interest rates
● Simple approval process
● Flexible repayment tenure
● Continuous ownership
● Optimum use of your valuable at the time of need.
● The best tool for debt consolidation
● Pre-closer


A loan against property is the best source to raise funds. The only drawback of such type of finance is that if the borrower is unable to repay the credit amount fully, the financial institution or bank can take ownership of the mortgaged property.