Having your own property or home can be a boon in more ways than once. It provides you and your loved ones a roof over their head or you can rent it out for second earning. Your valuable property or house can also help you to obtain huge amount of funds for a particular event. These expenses for personal events include exotic vacation, funding child’s higher education or wedding that occurs suddenly or demand arranging funds in shortest possible time.

One of the convenient and hassle free solutions to arrange these funds is to “Apply For Loan against property“. It is a kind of secured loan that disburses loan money against your property pledged as collateral. The amount of loan approved depends upon various aspects such as current market value of the pledged property, your income source, debt to income ratio, credit score etc. A loan against property can be a best financial solution for funding personal expenses as per following reasons:

Multi-purpose Loan: It is the biggest advantage of a mortgage loan that it has the flexibility to utilize the money for different purposes. Generally, some of the mortgages in financial sector are limited to specific purpose and can’t be utilized for other purposes. The funds on loan against property are granted without any restrictions on their usage. Usually, 60-70% of the market value of the property is granted as loan money.

Flexible interest rates: The interest rate is the key factor that influences the decision of taking this property loan. The loan rates also depend upon number of factors such as CIBIL score, monthly earnings, market value of property, along with type of mortgage you are applying for. With all the documents in place and good credit score, one can enjoy competitive rates on loan against property that are flexible.

Extended tenure: The repayment period for this type of mortgage unlike other mortgages is longer. It could be as long as home loan, 15-20 years. Hence, you have ample amount of time to earn money and repay the borrowed amount. Some of the lenders also offer value additions like balance transfer and additional finance as well.

When you “Apply For loan against property Online“ or offline, you would have to prepare some documents related to your income, property and identity along with your loan application. After verifying your application and documents, the terms and condition of the loan will be finalized. It is advisable to research all about the lender and lending schemes better to fulfill the eligibility criteria of borrowing.

Mortgage gives you the opportunity to realize the financial potential of your residential or commercial property. You can visit the Shubhbank for loan against property having years of experience in lending sector and expertise that will help you obtain a fully customized loan with exclusive features and benefits. One can also choose from wide range of property loans to meet your individual requirements. ShubhBank is the financial institution which is reliable and reputed mortgage provider with significant network across the country.

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.

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.

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.

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.

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.