Nowadays loan against your residential or commercial property is a best way to raise lump sum cash. You are free to use the loan amount for any wedding event, business expansion or home renovation etc. It is an outstanding option to utilize the value of your property to meet any financial requirement. One can “Apply For Loan against property“ and can mortgage his/her property by meeting up the eligibility criteria asked by the specific lender.

The loan amount, interest and tenure can vary from lender to lender depending upon the value of your property as well as credit worthiness. It is good to assess your financial situation before getting a loan. Here, in this blog post we have prescribed some points to look at before availing a Loan against Property. Let’s go through these points:

⇒ Assess your financial profile: One can start it by consolidating their total income and total debt including your rent, insurance premiums, children’s school fees etc. one you find the difference between two, you will come to know what you left with to pay an EMI for a new loan. There are number of lending platforms that provide EMI calculator to understand your potential. You just need to enter your desired loan amount, tenure and interest rate; you will get your EMI.

⇒ Loan repayment period: Everybody needs to fix their repayment structure judiciously. Any individual gets tempted to pick longer tenure and shorter EMIs but one must be aware that you will end up paying higher rate of interest making your borrowing cost higher. Therefore, it is good to know your EMI capacity so that you could minimize your repayment period.

⇒ Never delay your EMIs: When a borrower delays their monthly installments, lender may levy a penalty which also adds up to your loan cost. Moreover, delayed repayments can affect your credit report adversely. It is always good to be disciplined with your payments to maintain your credit profile.

⇒ Convenience: Time is priceless and crucial factor in any transaction, so one should always look for a lender with whom you can “Apply For Loan against property Online“ rather than wasting your time by visiting a branch with pile of papers. ShubhBank offers an online lending platform which is a convenient way to avail a loan. Visit our website and click on “Apply Now” for loan against property and upload your details to submit your application.

⇒ Right lender: Any potential loan seeker should choose a lender after checking some important parameters because applying a loan with multiple institutions can hinder your credit score which can lead to loan rejection. ShubhBank is a renowned lending platform that offers loans with complete transparency and has a smooth operation with speedy loan processing. It would be a wise decision to choose an authentic lender with easy eligibility criteria.

Hence, after going through these points, you must be aware of the fact that these things are extremely important to make any informed decision regarding mortgaging your commercial or residential property to fulfill your personal or professional needs.

A loan against property is categorized under secured type of loans where you kept your residential or commercial property as collateral against the loan money. The quantum of loan depends upon the market value of the property which is about 70-80% of the overall price. Lap can be availed by both salaried persons and self-employed individuals as it fall under secured category.

You can “Apply For Loan Against Property“ and utilize it for various purposes as per your needs like home renovation, wedding expenses, business expansion as well as higher education. In this blog post, we have listed some of the reasons that how beneficial is to fund your financial goals with loan against property:

Higher loan quantum: As we mentioned earlier, your property valuation decided the loan amount but the quantum is much bigger as compared to other secured loans such as Personal Loan. It will allow the borrower to unlock the potential of their property and get higher loan amount.

Minimal interest rate: The interest charges on LAP is comparatively lower as it is a secured loan and results in lower EMI and interest outgo for the borrower. If you are seeking a loan with big ticket size and loan tenure, it is better to avail loan against property as it is one of the convenient option and easier to be repaid.

Longer repayment period: The repayment period under mortgage loan can be up to 10-15 years whereas in case of Personal Loan, it will be only for 5-6 years. The longer tenure will help you in easing out the financial burden on you. Some borrowers also prefer to get a LAP because it offers the flexible repayment structure.

Easy eligibility: Being in a category of secured loan, the eligibility criteria for loan against property is very simple for both the salaried and self-employed individuals. Some lending institutions such as ShubhBank also provide doorstep services to their borrowers along with easy eligibility criteria.

Easy repayment: Most of the lending institutions offer you great flexibility with LAP. In this loan, you get a sanction particular amount on the basis of property price but you only have to pay the interest on the money you take as a loan out of the total sanctioned funds. This way you can align your loan repayments and other financial goals in a better way.

Foreclosure and repayment charges: As this loan scheme falls under longer repayment period and big ticket size, so most of the lenders do not levy extra charges on prepayment. It makes the closing of loan easy and stress-free as compared to other loan solutions otherwise, foreclosure or prepayment charges can burn a hole in your pocket if you try to reduce your debt burden.

Hence, these are some of the benefits that one can get after they “Apply For Loan Against Property Online“ or offline to fund their other financial goals in long run. ShubhBank is known for offering loan against property at affordable interest rates with nominal documentation as well as with quick and easy approval process.

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.

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.

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.

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.