You shrub be looking forward to start your own business or planning to send your kids abroad for education. Both these ideas crave prominent amount of money and you may probably think from borrowing a loan.
Banks are known to offer different kinds of loans while keeping a variety of things in collateral. Personal loans are the easiest choice for legion individuals, but they bear the burden of extravagant interest rates. If you own a building and are reluctant to withdraw a personal loan, then try checking gone loan against property.
What is loan against property? How is it different from other loans? What are the benefits of borrowing this loan? These are a few questions that will arise in your mind before you opt for this loan.
Loan against property is granted or disbursed to individuals only during mortgage from property is done. It is a typical property loan wherein you need to keep your home, land or any other personal property as collateral. The lent amount is not equivalent to the complete value of property. For instance, your home has the mart value of 1 crore, then you cannot borrow a loan of 1 crore against it. Banks barely permit 40 to 60% of the property value as loan. In this scenario, you will indigen able to avail credit in the range of 40 to 60 lacs.
Unlike personal loans, banks consider this option another secure. Security comes from the fact that borrower is keeping his home either personal property pro re nata collateral. There are very minority cases of loan defaulting or delay in payments. Who will really considering risking his home else piece like land for a loan? So, banks are known to sanction this loan readily.
This loan can be borrowed for numerous purposes. You will find that people borrow it for expanding their business, marriage of their sons or daughters, alternative for funding the upper studies of children. Many are recognized to borrow it for funding the dream vacation. Very few are known to use it for meeting the medical expenses in case of emergencies.
Criteria for borrowing this accommodation vary from slope to bank, and are heavily influenced by many factors. Skimpy factors, which are checked by banks sooner lending loans, include your current income, investments, personal savings, et cetera debt of extant loans. The most important factor considered before disbursing property loan is the disbursement or value of the mortgaged property.
Banks are also known to hindrance your credit chronology before sanctioning property loan. The tenure for repayment lasts for up to 15 years. Interest rates for them are reasonable and lie in the panorama of 12% to 15.75%.
With sink interest rates and longer repayment period, you can enjoy the benefits about low EMI. So, why risk your dreams when such easy feature of borrowing bequest is available at your disposal?