Loan Against Property

Loan against Property – Mortgage Loan

Looking to meet any of your financial needs and expenses? Where would I get the money from? Then need not worry when you are offered with the best loans in India. And one of such loan is Loan against Property. Yes, Loan against Property also known as Mortgage Loan is a secured loan. It is available for both salaried and self-employed borrowers. It helps to fulfill business and personal needs by mortgaging the property. Here property acts as a security for the loan.

What is Loan against Property?

Loan against Property is one of the abstract aspects of banking. It is a Mortgage Loan which can be availed by keeping a property as security. The financial institutions offer this loan against a property, which can be a residential or commercial building or a piece of land. The loan is easily availed by mortgaging the property with the bank.

Under this system, the Mortgage Loan is provided at a certain percentage of the property’s market value, usually around 40% to 60%. Here consumer gives a guarantee by using his property as a security.

The Loan against Property can be fruitful if you:

1. Want to expand your business

2. Want to get your son/daughter married

3. Want to send your son/daughter for higher studies abroad

4.  Want to fund your dream vacation

5.  Want to fund your medical treatments

Advantages of choosing Loan against Property

    • 1. Low Interest Rates – Rate of Interest ranges between 10% to 15 %
    • 2. Interest Rate is fixed – The interest rates for Business Loan are fixed. It means it will not change for the entire Loan Tenure. The interest rates starts from 14.99%
    • 2. Easy to avail – As it is a secured loan, banks are more willing to provide these loans.
    • 3. Long Tenure – Longer tenure up to 15 years.
    • 4. Low EMI – As the loan payment tenure is of longer duration, the EMI is also low. It becomes suitable for customers who can’t afford to pay higher EMIs.
    • 5. Tax Benefits Offered – People taking Business loan for their businesses can enjoy tax benefits. The ratio of profits is used to pay the loan amount; it is exempted from the tax calculations.
    • 6. Quantum for loan is higher – The maximum and minimum amount that can be withdrawn using the plan varies depending on the bank. You can apply for a lower amount also as per your requirements.
    • 7. Fast Online Process – One can easily apply online for Property Loan.
    • 8. Minimal Documentation – Easy and hassle-free process with instant cash approval.

Types of Loan against Property

There are various categories of Loan against Property you can choose from as per your convenience and eligibility. This depends on Bank or financial institution you are opting for.

    • 1. Regular Loan Against Property – This loan fulfills any kind of personal and business needs which may include business expansion, acquiring assets, etc. Lowest interest charged on Loan against property is 8.80%. All banks and NBFCs provide property loan for these purposes: like for loan against residential property, while only selected banks offer loans against commercial property. Financing companies are typically more open to extend loans against residential property. Very few NBFCs and bank offer loans against industrial property.
    • 2. Loan Against Property Overdraft – This loan is availed by customers who expect to have surplus income or fluctuating income during the year. This facility allows you to deposit the available surplus amount for any period which can be as short as few days in your Loan against property account and reduce your interest liability. This option is highly suitable for self employed businessmen or professionals who have fluctuating funds requirements throughout the year.
    • 3. Loan Against Property Top Up – This is an additional loan amount customer can avail on existing Loan against Property. Top up can be taken either from the existing bank or can be availed at the time of transferring your outstanding property loan amount from one bank to other bank to avail low interest rates. Top up amount eligibility may vary from bank to bank based on your income and value of the property and needs a thorough comparison.

Is Loan against Property the best choice for me?

If you’re unable to meet any of your financial requirements may be business or personal. Then Mortgage Loan is the best choice for you. This Mortgage Loan offers you a high loan amount ranging from 5 Lakhs to 15 Crores. The interest rates start from 10.00% p.a. Even the repayment options are available as per your suitability. And moreover there is flexible tenure of 1 year to 20 years.

So if these facilities excite you then Loan against Property is a best choice for you.

Am I eligible for Loan against Property?

Eligibility criteria for Loan against Property must be fulfilled before applying online for the same. Please go through Loan against Property eligibility conditions before applying online:

1. A person must be an Indian.

2. He/she should be of at least 21 years old at the time of submitting the loan application.

3. He/she should have been employed by your current organization or been involved in your business for a certain number of years.

4. Monthly repaying capacity record for other loans, credit cards etc.

5. He/she should have submitted EMIs for other loans and made his/her credit card payments on time for last 3 months prior to submitting the loan application.

6. The property in question should be free from legal tangles and should have clear titles registered in the name of the applicant.

7. The applicant should be one of the owners of the property to be mortgaged.

What Documents are required to apply for Loan against Property?

Below mentioned are the common documents which are required for applying online for a property loan.

1. Loan Application Form

2. Identity Proof

3. Residential Address Proof

4. Form 16

5. Property Documents

6. Processing Fee Cheque

ConditionIndustrial PropertyCommercial PropertyResidential Property
Income Proof for Salaried6 months payslip, ITR of last 2 years, Form 16, 6 months bank statements showing salary credit
6 months payslip, ITR of last 2 years, Form 16, 6 months bank statements showing salary credit6 months payslip, ITR of last 2 years, Form 16, 6 months bank statements showing salary credit
Income Proof for Self-EmployedITR of last 3 years, VAT/Service tax registration, business address proof, financial statements certified by CA, copy of partnership deed, proof of business existence & business profile.
TR of last 3 years, VAT/Service tax registration, business address proof, financial statements certified by CA, copy of partnership deed, proof of business existence & business profile.ITR of last 3 years, VAT/Service tax registration, business address proof, financial statements certified by CA, copy of partnership deed, proof of business existence & business profile.
CIBIL650 and more650 and more650 and more
ID ProofKYC Documents , PAN Card, Aadhar Card, Voter IDKYC Documents , PAN Card, Aadhar Card, Voter IDKYC Documents , PAN Card, Aadhar Card, Voter ID
Address ProofVoter ID, Utility Bills, Passport, Aadhar CardVoter ID, Utility Bills, Passport, Aadhar CardVoter ID, Utility Bills, Passport, Aadhar Card
Property DocumentsRequiredRequiredRequired

Why Choose us for applying for a Loan Against Property?

Almost all banks are offering attractive schemes on Loan against Property at competitive rates with many customer friendly features. Through our portal you can check rate comparison, bank comparison, check your loan eligibility, calculate EMI, apply online and finally get the best Loan against Property rates. With the supportive customer care support and attractive benefits you can choose us for availing Mortgage Loan.

1. Multipurpose Loan facility

2. No hidden charges

3. Easy documentation

4. Interest rate starting from 10.00 % p.a

5. Loan amount 5 Lakhs to 15 Crores

Know More about Property Loans – FAQs

Q. What is Mortgage Loan?

Ans: A mortgage loan is a type of loan in which borrower is required to mortgage any type of property to the lending institution like it basically act as security against loan if in case someone fails to pay back the loan then the remaining amount can be raised by selling that property.

Q. What is the minimum and maximum tenure of loan against property?

Ans: You will need to submit copies of the following property documents
I. Past title chain – Conveyance deed, sales deed, allotment letter, possession letter
II. Copy of approved plan for construction/ extension
III. Latest property tax receipt
IV. Receipt of advance payment towards purchase of property in case of resale or booking with builder

Q. Can I prepay my Loan against Property?

Ans: Yes, you can prepay the loan taken against property; however, you would have to abide by certain terms & conditions levied on prepayment of loan by the particular bank.

Q. How does one get back the property pledged as security?

Ans: The property pledged as security will be returned back to the owner once the entire loan amount is cleared and there are no pending dues.

STEPS TO APPLY FOR LOAN AGAINST PROPERTY

Check your eligibility and fill in the Loan Application FormCompare various Loan options, and apply for the best optionAfter successful submission of the application get an instant e-approval

Loan against Property EMI Calculator

You can check your Property Loan eligibility as well as you can check your EMI payable as per your budget online through Mortgage Loan Calculator. It is simple to use and results are generated within a second. You get your Mortgage Loan EMI as well as the complete chart for the entire tenure within no time at all.


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