There are a lot of questions in our mind when it comes to send our child for higher education in abroad or when it’s their marriage or any urgent requirement of money at home. We always look for a loan with low rate of interest and that won’t ask for much formality.
A Loan against property is the best loan which covers both the features i.e. it comes with less rate of interest and if your documents are complete it won’t take much of your time to get disbursed.
As the name suggest it is a loan that is given against the mortgage of property. The loan is given at a certain percentage of the property’s market value; usually it varies from 40% to 60%. You can take this loan against your self occupied or rented residential property.
You can take a Loan against property for the following purposes.
1) For higher your children’s higher education.
2) For marriage purpose in the family.
3) For expanding your business.
4) For medical treatment.
5) For a holiday trip.
Eligibility criteria for loan against property: – Initially it varies from bank to bank that on what basis or the documents that they are looking for loan against property, some of the common factors are
1) Income
2) Value of the property
3) Repayment track of other loans.
Tenure offered: – A maximum tenure up to 15 years is offered for loan against property.
You might find these relevant:
- Loan against Property scheme re-launched | HDFC
- ‘Smart LAP’ Mortgage loan launched by HSBC
- Loan Against Property- An easy way to fulfill your Financial Needs