An Overview Of The Loan Against Property Facility

  • Added:
    Dec 30, 2013
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An Overview Of The Loan Against Property Facility Photo by Aishwarya Mahurkar

Depending upon what you need the finance for and the loan amount that’s required, you need to find a loan option that fits your requirements perfectly, since getting the ideal loan option isn’t always easy. Often, the only way that we can take care of our miscellaneous expenses is by opting for a personal loan, which is an expensive alternative due to the high interest rates linked to it. Hence, most people hesitate to choose a personal loan. However, there is one more option that allows us to take a loan for our personal expenses without worrying about the interest rates, and that is a loan against property. This facility provided by many banks/housing finance companies nowadays gives us the opportunity to fund our dreams at an affordable cost. Know more and choose the best.

The eligibility criterion for a loan against property  is more lenient than for any other loan. Since the bank or financial institution feels secure having your home or commercial space as collateral for the loan, the approval comes along much faster and is hassle-free. While you can easily get up to 50% of your property value in the form of a loan, your EMIs will still be a lot lesser and your interest rates much lower than any other alternate loan option. Thus, with a loan against property, you can finance your education abroad or travel all around India with no worries and without feeling burdened about the loan.

The minimum loan amount for a loan against property is around 5 Lakhs, whereas the maximum amount can go up to 5 Crores depending upon the value of the home or commercial space. While banks/financial institutions tend to lend a higher percentage of the property’s value when it’s commercial, it’s much better to speak to the bank/institution of your choice and clarify all their terms and conditions beforehand.

With simple documentation process and even easier repayment methods, this loan option can be the ideal solution for any kind of financial requirement. Don’t let your dreams wilt or any financial emergency cause you stress since with the loan against property alternative, all your monetary needs can be fulfilled without difficulty and within no time. Consider all the available options and only then choose a bank/financial institution with caution to find the best deal in the market. With a loan against property facility , why would you want to wait any longer?

Author's Profile

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the different types of home loan products such as Housing loan, Home improvement / renovation loan, loan against property facility, land / plot loan & processes that cover eligibility criterion for a loan against property

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