It is true that most of the individuals don’t know much about Loan against Property and end up availing Personal Loan whenever they need financial aid. Personal Loans are good when you need low amount of funds but if your requirement is huge then you can, it is always better to “Apply For Loan against property“ as it helps you to get desirable amount and also saves your money on the rate of interest.

One of the main reasons why Mortgage Loans get ignored is lack of knowledge about them in common people. The majority of individuals don’t know how a LAP is availed, what are the interest rates charged on it, how they can apply for it and so on. Therefore, this blog post is to clear all your doubts about Loan against Property as we will guide you about the loan and checklist to make before getting a LAP:

Compare the interest rate: Once you decide to avail a mortgage loan, the first thing which you should consider is comparison of interest rate. There are so many lenders in the market who are offering Loan against Property but try to choose one that offers you favorable deal with affordable interest rate. One can compare interest rate online between different lenders and select that offers you easy application and reasonable rates.

Pay attention to the loan: Before signing any loan agreement, it is always wise to read the terms and conditions carefully but only a few people this step properly. However, not having a proper awareness can cost you much in future. So, don’t sign any loan document in hurry and look upon every paper carefully. Moreover, if you are unable to understand the terms, you can always seek help from financial expert.

The things to check in loan agreement include terms for pre-payment, clause that allows lender to alter the conditions of the loan and last but not least is the clauses after defaulting on loan.

EMI calculation: It is really important to know your estimated EMI before getting any loan. It not only helps you to analyze your repayment capability but also helps you to plan your budget accordingly. The one thing to be aware of is never miss out on repaying the loan that you took against property because your property is on risk of auction if your default on loan for any reason. One can use an EMI calculator to know the right amount of monthly installment.

Hence, Loan against property is a secured type of financial tool where borrower gets a loan by pledging their commercial or residential property as collateral to the specific lender. One should utilize this option wisely and “Apply For Loan against property Online“ or offline when he/she is sure about their repayment capacity as by taking this loan, you risk your ownership of the property which is pledged as collateral. At the end, we can say that Loan against Property is a great way to avail a bigger cash to handle your financial crunch.

Buying your own house will be a one of the most fulfilling experiences in everyone’s life. However, it requires a large investment and to meet the purchase value, one can rely upon home loan. One doesn’t have to wait for years to accumulate wealth to purchase a home, they can “Apply For Home Loan“ to access funds for home and this loan also provides attractive tax benefits.

Now you know the benefits of availing a home loan, you should also be aware of home loan repayment. There are number of ways offered by the lender these days to repay your home loan. Therefore, prior to this discussion that what repayment options you could consider, let’s have a look how these loan are repaid. The loan is repaid through EMIs which is a fixed amount you need to pay back your lender every month on a fixed date throughout the loan tenure.

Here, in this blog post we will discuss some of the options that how can you consider your repayment against home loan. Have a look now:

Timely repayment: The way you schedule your EMI payments plays an important role in the cash flows. If you are salaried individual, your repayment should coincide with your salary date whereas if you are self-employed individual, make sure you have required funds in your bank account to repay your EMI. Make sure the timely repayment of your monthly installment as it helps you to escape any extra charges or penalty and improves your credit score.

The earlier the better: Availing a home loan in the early age as in 20s or 30s ensures that you could have sufficient time to pay back your home loan prior to your retirement age for leading a stress free life. Moreover, you can also pick out the option for longer tenure for home loan in which a lender implies a lower EMI for your loan amount and vice versa.

Prepare an emergency fund: A robust financial planning should surely help you to accumulate an emergency fund which could be really useful in case of job loss or medical urgencies such as hospitalization or any other mishappening. It will ensure that the money you have kept aside to repay your home loan should not be affected in such situations.

Limit your monthly installment: If you have multiple loans to service such as personal loan, car loan, education loan etc. then lender will compute your EMI from calculator which will be added to your other loan EMI payments to assess how much of your total income is earmarked for each loan repayments. Therefore, it is advisable to limit your monthly installments to a maximum of 40% of your monthly earnings.

Hence, you know that how you can consider your home loan repayments to make your loan journey easy, stress-free and joyful. Now “Apply For Home Loan Online“ at ShubhBank as we offer simple as well as convenient repayment options with which you can plan your cash flows smartly and prevents you from hindering your financial goals.

As the name reveals, Loan against property is a secured form of loan provided by lender against any immovable property. A borrower can mortgage his/her residential or commercial property as security to procure the loan money. The loan quantum varies from one lender to other and can be compromised around 70-75% of the property’s market value. It is good to keep in mind that when you “Apply For Loan against property“ you need to repay it in EMIs in fixed tenure.

A Loan against property requires collateral so one has to keep the property papers as security with the lender. In case you default on loan for any reason, then your pledged property rights will be transferred to the lender. Therefore, make sure to pay the monthly installments on time without any delays or interruption. To make the loan journey easy, one should review few points while applying for a loan which is mentioned below:

✓ Repayment period: The repayment of a loan is most important factor as it impacts your creditworthiness. However, mortgage loans are secured type of loans; lending institutions usually offer a longer repayment tenure which could go up to 15-20 years depending upon the age of borrower, income and eligibility criteria.

✓ Loan quantum: The other key factor is the loan money which will be disbursed to you to fulfill your financial needs. Since you have pledged your property with lender so higher loan quantum will be offered depending upon the market price of your property. Before approving your loan money, the loan officer will evaluate your property’s value, income, past payment history as well as credit score.

✓ Rate of interest: The next thing to look upon is interest charges because the rates are lower in the case of Loan against property. More secure will be the loan, lesser will be the rate of interest and vice versa. When the lender has less monetary risk, they can offer you a lowest possible rate of interest depending upon the principal amount.

✓ Loan processing time: Unlike unsecured type of loans, the secured type of loan such as mortgage loans take time to process as lender needs to evaluate the property papers and its worth depending upon the current market value. This due diligence ends up extending the time needed in processing the Loan against property.

✓ Eligibility criteria: It is one of the main factors that decides whether your loan will be approved or not. Once you meet the eligibility criteria that involve age, income as well as credit score then lender will disburse the loan money directly to your account. The lender also provides you the quality services after you “Apply For Loan against property Online“ or offline as the loan journey could continue for up to 15-20 years.

Hence, Loan against property offers you numerous advantages such as lower interest rate, longer repayment period, higher loan quantum as well as greater flexibility; you will find it the much easier and convenient option to tackle your financial crisis. It is kind of credit solutions that offer needed funds as well as post disbursal services.

Owning a home is one of the most significant dreams for most of the people and they wish to build a house for their family. For most of the people, having a home is a long term asset which they wish to leave behind for their upcoming generations. Therefore, to make home purchase achievable in the skyrocketing property prices, lenders have proposed the concept of home loans.

One can “Apply For Home Loan“ to get instant access to affordable financing to purchase their dream home. Similar to other loans, home loans also have certain guidelines as the process of home loan is regulated by RBI and National Housing Board. In this article, we have outlined some of the guidelines that are followed by the lending institutions while sanctioning you a home loan:

✓ Valuation of the loan: The loan amount offered by the lending institution depends upon the loan to value ratio which is evaluated on the basis of borrower’s eligibility as well as the market price of the property to be pledged as collateral. A lender will sanction the funds up to certain limit like 80-90% of the total value which excludes stamp duty, registration charges as well as other expenses.

✓ Pre-payment charges: As all know, Home Loans are generally high value loans which borrowers choose to repay in 20-25 years duration. However, if anyone chose to settle or pre-pay the loan amount earlier then a penalty of 2-4% is levied. According to new guidelines, RBI has made the Home Loan terms more flexible and favorable for borrowers by waiving the penalty charges.

It is applicable for the Home loans availed on a floating rate of interest and taken for non-business utilization.

✓ Eligibility and Documentation: Every lender need to ensure while lending money that all the submitted documents by the borrower are in order with the statutory requirements. Moreover, home loan applications shall be accepted of the customers who meet the eligibility criteria which involves a regular income, efficient repayment capability and a god credit score above 750.

This all can be verified with the help of documents. Keep in mind that eligibility criteria and documentation can be different from one lender to other.

✓ Flexibility to switch: In case, you have availed the home loan when the rate of interest was so high and now other lender is offering you to transfer your outstanding loan balance at better rates of interest, you have an option to foreclose the loan with penalty and switch your existing loan with the new lender at low rates of interest. However, this benefit can be enjoyed for the borrowers who have taken up the floating rates of interest.

Well, in the times of inflation, we all would not have sufficient funds to fulfill our needs but the lending sector has made some major dreams possible through their loan solutions these days. Thus don’t feel restricted to buy your dream home now as you can “Apply For Home Loan Online“ or offline to enjoy your comfortable space with your family and beloved ones.

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.

Nowadays, one of the easier methods of financing a home purchase is availing a home loan but sometimes your loan application gets declined. These reasons can be as simple as not meeting the basic eligibility proposed by the lender or some of the documentation errors in your KYC details as well as property title.

In this article, we will discuss some of the significant reasons of the rejection at the time you “Apply For Home Loan“. We will guide you through these points that keeping these factors in your mind while availing a loan can lower or nil the rejection of your application.

● Low credit score: Every lender prefers to sanction the loan to its customers who are having a credit score above than 750 as it reflects your capability of repaying the loan and lowers the risk of default. However, if you credit score is poor then try to improve your credit score before getting a home loan to avoid rejection and to negotiate on better terms of loan.

● Age of borrower: Generally, home loan is a long term with repayment period going up to 25-30 years. In case, if you are applying for home loan near to your retirement age, then the chances of rejection are higher. If anyhow you get approval on your loan application, then you have to pay the higher down payment and you have to provide some additional guarantees such as younger co-applicant.

● Insufficient paperwork: Improper documentation can be one of the main reasons behind the rejection of your home loan. If you fail to provide any single document asked by the lender, it can impact the entire loan approval procedure. Therefore, it is good to checklist all the required documents before getting a loan to avoid any troubles through loan procedure.

● Unstable job: Your job stability is the crucial factor consider by every lender as it indicates the regular cash flow to repay your loan within the stipulated time. However, frequent job hopping can impact your home loan eligibility adversely and reflects the sense of uncertainty about your credit-worthiness in the lender’s mind.

● High debt to income ratio: A high debt to income ratio of borrower indicates that a larger part of your income is utilized in servicing existing loans or other expenses. So, prior to loan application, one must ensure himself/herself as well as lender that they have low debt to income ratio. You must be aware of the thing that your loan EMIs should not cross the 50% of your monthly income.

● Unauthorized property: The loan application doesn’t depend upon only meeting the eligibility criteria but it is also based upon the paperwork regarding property to be purchased. It is advisable to check the every aspect of property to make sure that the property is free from legal issues and should meet all the guidelines of local authority.

Hence, it is good to ensure yourself that you fulfill all the guidelines and eligibility criteria of loan then “Apply For Home Loan Online“ or offline to ensure smooth home buying experience.