Feature Image

HOW LOAN AGAINST PROPERTY CAN BE AN IDEAL CHOICE FOR LARGER FUNDING?

Posted on Monday April 12th, 2021

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.


Feature Image

HOW TO INCREASE YOUR HOME LOAN ELIGIBILITY?

Posted on Thursday February 18th, 2021

Nowadays, home loan market is growing with every passing day and easily available to the common masses. Though it is easily accessible, therefore, one should be aware of the loan quantum that can be approved to him/her. Thus, it is advisable to research properly and understand completely about the home loan eligibility. So, before you Apply For Home Loan it is highly recommended for you to check your eligibility as well as affordability.

Loan eligibility is a term given to specify your affordability. It reflects how much loan money you will get through home loan. The eligibility is determined by various factors which include borrower’s age, income, employment, CIBIL score and many more depending upon the norms of particular lending institution. The factors that help in enhancing the home eligibility involves a good repayment history, regular source of income, co-applicant/co-borrower, low credit utilization ratio etc.

There are some tips and tricks to increase your home loan eligibility and to secure a loan quantum that you desire. In this article, we are discussing some tips to enhance your eligibility which is mentioned below:

→ Adding a co-applicant: Signing a home loan agreement with your spouse or your partner as a co-borrower can increase your eligibility. By doing so, you can also get approved for higher loan quantum from the particular financial institution. As a matter of fact, co-borrower can be your life partner, your sibling or any other family members. Adding co-applicant can increase your EMI affordability and lender find it more secure to lend you the money. Some of the lenders also get ready to lend a loan at comparatively low rate of interest.

→ Adding second source of income: Another source of income can help you to increase your eligibility for home loan. A second source of income can be your rental income, part-time job, rent from farms, share etc. Adding any of these on top of your monthly income reflects your good financial health and hence, lending institution find it secure to approve you a higher loan quantum.

→ Improve your credit score: It is one of the key factors that decide your loan approval or rejection either you Apply For Home Loan Online or offline. It is one of the most important components which decide the loan money which will be approved for you. Lenders find it secure to lend money to the person having good credit score as it indicates good repayment history of yours. Therefore, if you are planning to take a home loan, check your CIBIL score first. If you find it low, then try to improve it.

→ Repay your existing debts: The repayment of existing debts not only help you to build a good CIBIL score but also help you to decrease the credit utilization ratio which further enhances your home loan eligibility. Moreover, having some additional savings and investments can also add up to your eligibility.

Hence, these are some of the tips and tricks that you can follow to increase your Home Loan Eligibility and make the loan journey easy and convenient for you.


Feature Image

WHAT ARE THE CHARGES ON LOAN AGAINST PROPERTY?

Posted on Monday December 14th, 2020

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.