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WHAT IS THE PROCESS FOLLOWED FOR LOAN AGAINST PROPERTY?

Posted on Monday July 18th, 2022

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.


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HOW LOAN AGAINST PROPERTY IS BEST FOR FUNDING YOUR EXPENSES?

Posted on Monday February 28th, 2022

Owning a house can be a boon in more ways than just acquiring an ownership. It not only provides you a roof over your head but you can also rent it out for passive income. One of the major benefits of your hard-earned property is that it can also help you to access large amount of funds for your personal needs. It will help you to arrange the funds at short notice when you need to spend it for some personal events such as a milestone birthday, child’s education in abroad or destination wedding and many more.

One of the instant and stress-free ways to arrange cash for these needs is to Apply For loan against property. A mortgage loan is a secured type of loan that provides you loan money against your property as collateral. The loan money is disbursed depending upon the different factors including the current market price of the property, debt to income ratio, your income source, repayment capacity and other eligibility criteria defined by specific lender.

A loan against property can be a best remedy to tackle all your personal expenses and events due to its unique and great features which are listed below:

Funds for any purpose: It is one of the major benefits of a mortgage loan that one has the flexibility to utilize the loan amount for different purposes. The mortgage loans in the lending sector are not limited to the specific purpose as they can be used for any of the activity. With the LAP, funds are accessed without any restriction on their usage. Generally, 60-70% of the market price of property is disbursed. However, with the good borrower’s profile, it could stretch to even up to 75%.

Flexible interest rates: The rate of interest is the key factor that influences the decision of taking a LAP. The rates may vary depending upon numerous factors such as type of mortgage you are applying for. Whether you Apply For loan against property Online or offline, rates of interest can range between 10-20%. One can enjoy a smart loan against property interest rates that are flexible with a right credit profile and beneficial loan features.

Extended repayment structure: Unlike other loans, the duration of this type of loan is longer which could go as long as 10-15 years. Hence, you have ample amount of time to earn cash and repay the loan amount without any stress. Choosing extended loan tenure for loan against property helps to lower your EMI leaving you with additional money to spend on achieving other financial goals.

When you apply for a loan against property, you have to upload or submit some documents such as identity proof, income proof and property registration papers along with your loan application. The terms and conditions of the loan will be finalized depending upon the verification and processing of the loan application. It would be good for you to seek an advice from a financial expert to enhance your loan eligibility to get an easy approval on loan against property.


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HOW TO DECODE THE CONCEPT OF LOAN AGAINST PROPERTY?

Posted on Wednesday January 19th, 2022

Have you ever heard about the financial term loan against property? If not, then you must wonder what does this term means and how it is different from the loan against home. In this article, we will help you to decode the concept of loan against property which is also termed as LAP in the financial sector or lending market. Well, Loan against Property is type of secured loan which is accessed against an immovable asset, most probably a property or a type of land that should be kept as a mortgage with the lending institution to avail needed liquid funds. In this context, property can be residential or commercial.

There is a fundamental difference between home loan and mortgage loan as housing loan is availed to purchase your own house which could be under construction or a residential plot where as if you Apply For Loan against Property one can meet their personal and business financial requirements such as wedding, exotic vacations, child’s higher education or for any medical emergency or paying for hospital bills by keeping your property as collateral with the specific lending institution.

In recent times, Loan against Property is gaining high popularity due to the host of serving features which comes along loan money. We have list down some of the basic features of this loan for you:

√ This loan is availed against a property that can either be a residential property or commercial one.

√ Loan money of several lacs to crores can be availed while applying for loan against property.

√ The commercial properties that fall under the ambit of secured assets while availing a mortgage loan can be shops or office premises.


√ Any salaried or self-employed individual having a good credit score is eligible for getting a loan.

√ A rate of interest is comparatively much lower as compared to avail any unsecured type of lending such as personal Loan.

√ The type of interest rate under loan against property can be accessed under fixed interest rate or floating interest rate.

√ The tenure of loan for repayment is much longer and flexible in few cases.

√ The loan procedure is much faster for loan against property if all the requisite documents are in hand and the eligibility of the specific borrower is robust along with credit worthiness.


Therefore, your home or property can provides you the potential to fulfill your dreams to aid you in the pressing times. Hence, if you are seeking a Loan against Property, our institution ensures that you commence the loan procedure by contacting us to Apply For Loan against Property online or offline. We are prudent to do the research work and offering you the loan schemes from various lenders before finalizing any loan deal.

ShubhBank aims at fulfilling all your loan requirements and extends best-in class loan deals and post loan services that give you the financial power to accomplish all your personal dreams and professional goals with a stress-free loan journey at lowest possible rates of interest as well as flexible tenure.


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HOW MORTGAGE LOAN CAN BE AN IDEAL CHOICE FOR LARGER FUNDS?

Posted on Monday December 13th, 2021

It is obvious that most of the loan seekers do not have much knowledge about loan against property which means whenever they are in need of funds, they avail Personal Loans. These loans are ideal when your financial requirement is loan but if you are looking for larger funds, it is always better to apply for mortgage loan as it saves your money on the rate of interest.

The main reason behind LAP gets ignored is the lack of knowledge among common people. The majority of individuals don’t know how to avail a loan against property, what is the interest rate, repayment terms and so on.

Loan against property is a type of secured loan which can be secured by pledging your residential or commercial property as security to avail the desired funds. As this borrowing involves pledging your prized possession with lender, so it is necessary to be careful about the entire loan procedure. Here, we will be providing a guide for loan against and property and some important points that should be taken into consideration:

Compare the interest rate: Once you finalize to secure Loan against property, the first step which should be taken is comparing the interest rate. There are number of lenders present in the market offering LAP but you should choose a favorable deal on affordable interest rate. You can easily compare the interest rates online offered by different lenders, so that you can pick a loan scheme at an attractive rate and EMI.

Comprehend the stakes: Besides interest rate, it is equally important to know the worth of the property that you are going to pledge to the lender. The real estate market is on upswing, so evaluate your requirements and then pledge your asset as security. If you understand the worth of your property, it will help you to secure good loan money. Nowadays, most of the lending institutions generally offer a loan quantum up to 75% of the market value of the property.

Be careful about documents and loan terms: Before signing any loan agreement, it is advisable to go through the loan papers carefully because sometimes, your ignorance can cost you too much in future. Don’t be in hurry, if you are unable to understand the loan terms then seek a help from financial expert. Read the terms carefully about the minimum and maximum amount of prepaying and clauses after defaulting on loan.

Calculate the EMI: It is really important to know your equated monthly installment before you Apply For Loan against property Online or offline to analyze your affordability which helps to plan your finances accordingly. One should not miss out his/her EMIs of loan as it will let your property be at risk of auction. Therefore, calculate your installment according to your repayment capacity then decide on loan amount that you will secure against property.

A loan against property is an easy way to fund your financial crunch but it is your responsibility to utilize this option wisely and apply it when you are sure about repaying the loan easily.


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HOW TO GET A LOAN AGAINST PROPERTY AT LOWEST INTEREST RATE?

Posted on Wednesday October 20th, 2021

Loan against property is granted to any individual who owns a property by any lending institution. In such times, a COVID outbreak has elevated the expenses more than the income, therefore, people who have to deal with long term financial issues, a safe solution which can help them for long years is to Apply For Loan against property.

In our country, the majority of financial institutions offer loan against property to a person who owns any residential or commercial property. It is meant to be secured loan as you have to keep your property as collateral to access the funds. Hence, the interest rates are lower than personal loan because of the security. There are few ways to follow which will help you to get the best deal on loan against property at lowest interest rate.

Maintain a good CIBIL score: It is very important to maintain a good credit score to secure any type of loan. However, it sounds difficult but in real, it is very simple to maintain your credit history. One needs to pay his/her bill payments, credit card dues and other loan repayments on time every month without doing any default.

Steady income and savings: Another key factor to secure the loans at lowest rate of interest is to maintain a steady income, especially as long as you have any pre-existing loan in your name. However, without a stable source of income or enough savings, it becomes difficult for you to repay the monthly installments and to clear all your debts. If you default on any of the repayments, you can lose your rights on pledged property.

Plan your budget: The important thing that one should be aware about is to manage the funds what they have. Thus, it is good to control all your unnecessary expenses otherwise it might hurt you in the long run. It will ultimately help you to save more at the end.

As a loan against property is known for a loan that lender provides a borrower against the property which is under his/her name, so lender will check your property ownership papers. A lending institution will send a team of valuators who will evaluate the market price of property to be pledged. You can secure up to 70-75% as a loan quantum depending upon the current market price of the property.

We can say that the people who wish to own a huge amount to clear their debts and to face the emergencies such as higher education abroad, to pay medical bills etc. they can Apply For Loan against property Online or offline as it will act as a boon for them.

It will be smart choice to follow the above mentioned points and to maintain every required document to get approved for loan. If you are looking for the best loan against property experience, you can contact ShubhBank or you can apply online at our website and we ensure you the best deals at the lowest interest rates in the market.


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HOW LOAN AGAINST PROPERTY CAN RAISE FUNDS FOR YOUR NEEDS?

Posted on Tuesday August 17th, 2021

Loan against Property is a financial tool that you can secure when you pledge or mortgage your property to the lender. It is a secured loan as far as the lender is concerned. In case you default on repaying on repaying the loan amount for any reason, the lender can retain the rights of your property. So, one should only pledge their property when he/she is sure to repay the loan.

Before you Apply For Loan against property you should plan your budget and save for long term financial goals that you can foresee. Besides all your planning, there are some uncertain situations which need to be addressed with additional funds. Let’s have a look to find out how Loan against Property can raise funds in some typical situations.

Education and Wedding Expenses: A higher education of your wards and their wedding are long-term financial affairs. You would normally plan them earlier in life and save up for it. There are specific loans offered by lenders for both higher studies and marriage. You can consider the fact that interest rates and repayment conditions on it are more convenient in comparison with these specific loans. You must be sure to repay the loan depending upon your income and saving.

Business Funding: You have to mortgage an asset when you avail a loan against property. As mentioned earlier, if you are unable to repay the loan, you could lose the right on your property to the lender. Therefore, utilize the loan money for purpose that is not too risky. That is why; it is good to secure this loan to expand your existing business rather than starting a new business as your business profits needed to be steady to pay off the loan easily.

Medical Emergency: As one’s age grows, medical expenses usually increase. The best way to plan this is to get a health insurance policy in your early age that can help you to manage the medical expenses later in life. But in case, you skip this step, there are high chances to shell out all your savings in tough times. Loan against property Online is not a best way to fund medical expenses but emergency but it can certainly help you out.

Down Payment for new Home: When you secure a home loan, the lending institution will only finance up to 80% of the market price of that home. The rest 20% will need to come from your pocket. If you are buying a luxury home, the down payment itself will cost into many lakhs. Generally, you should have saved for that but if not then you need to borrow somewhere.

You can also pick up a personal loan or loan against property to raise the funds but remember, the rate of interest on these loans is higher than the home which can result in a financial burden on your pocket.

At the end, you would see that LAP is a good option when you need to raise funds to fulfill your requirements but it is always great to compare all the available offers and finalize a calculated decision.