Choose A Loan Against Property To Meet Your Financial Needs

  • Added:
    Nov 26, 2013
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Choose A Loan Against Property To Meet Your Financial Needs Photo by Aishwarya Mahurkar

Each loan has a certain purpose and thus, it helps us to fulfil our dreams. If we want to pay for our education abroad or need finance for a project that involves a lot of travelling, procuring the money from our own bank account isn’t always possible. A large amount of money should ideally be paid off in small and steady instalments that lessen the impact of the expenditure. Whether or not we have saved the money already, it’s practical to opt for finance from a bank or financial institute that allows us to pay it back over a period of time. For such occasions, a loan against property can become the ideal solution that we’re looking for. Your house or your commercial property can help to fund whatever requirements you might have at a much lower rate than any other loan. Choose a loan against property and ensure that your needs are met.

Eligibility Criteria:

Every institution has certain factors that it considers before approving a loan request. These factors may change with varied type of loans and hence it’s important to know what to expect before applying for loan against property. Most banks have different criteria for salaried and self-employed individuals. Your income and the number of debts that you have to repay are the most vital criteria. The bank needs to know your repayment capacity so that they can be assured that you will be able to pay back the loan without any hitches. The eligibility criterion for loan against property  is much less stringent than for any other loan, as the bank has your property as collateral. However, it’s advisable to confirm with the bank about which aspects of your profile are most important.

Loan Against Property Interest Rates:

Loan against property interest rates  are usually much lower, since financial institutions have a security that you’ve pledged. Borrowing money by means of this approach can be a lot more beneficial than other methods, whilst ensuring that your loan will be paid back in an affordable way. Your EMIs are hence not a burden and your financial situation is easily manageable. The amount you can borrow from the bank depends greatly on the value of your property. Depending on the kind of commercial property or home that you’re assuring, your loan amount can vary between 50-60% of its actual value. It will be sensible to research well about how much your home is worth in the current market so that you get the best available loan.

A loan against property is certainly the answer to your financial requirements. Choose this option to be sure that all your needs are going to be met.

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 interest rates, land / plot loan & processes that cover eligibility criterion for loan against property

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