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.

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.

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.

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.