Let your property take care of your needs. The increase in the price of most of the thing increased the debt requirement Property Loan (LAP) refers to a multi-purpose loan that can be obtained by mortgaging your existing residential or commercial property to deal with the financial crisis. This loan puts funds at your disposal for crises like education, marriage, dream vacations, home renovations, debt consolidation, or even business expansion. By choosing LAP as a borrower, you will get financial assistance at a very reasonable interest rate and you can spend the amount for any reason.
This loan can be used by salaried people, independents, association companies and private companies. Banks have their own set methods for estimating loan eligibility. However, it ranges from Rs.2 lacs to Rs.10 crores. The exact amount depends on your property’s valuation, income, savings and existing obligations, credit history and, of course, ability to pay. The age limit is set between 18 and 60 years. Typically, the maximum loan amount can be up to 50% of the property value for commercial facilities and up to 60% for residential properties.
The loan requires simple documentation, mainly an application form duly signed by the borrower, proof of identity and residence, income documents; bank statement for the last six months, documents proving the existence of the company when necessary, and a check for the processing fee. The borrower must have a regular source of income to avail the loan. Although, the funds are offered against collateral, evaluation of your potential to repay the loan amount in full is mandatory. These days most of the money lenders are offering these finances online. Online application takes less time and gives applicants the facility to apply while sitting in the office or at home with no hassle.
Banks would offer you two types of interest rate namely fixed interest rate and floating interest rate. Interest rates on this loan generally range from 12 to 15.75 percent. LAP is generally approved for a term of 15 years (180 months). The borrower may choose to make repayments through the Electronic Clearing Service (ECS) or Postdated Checks (PDC). A client can always prepay a partial loan or pay off the full loan at any time during the term depending on the lenders’ rules for the term. For most lenders, prepayment penalties must be paid if the loan closes before full tenure.
Various banks, private financial institutions are lending money these days. If you are opting for a loan against the property, be sure to surf the Internet a lot to take advantage of the best offer and without risk. Upon completion, be sure to check all fines and fees. There are certain benefits of availing such loans. The borrower has the opportunity to build up a good track record with a bank by making payments on time. The client can enjoy various types of tax benefits, many banks or credit authorities provide other types of advantages, such as insurance benefits, a savings account with a zero balance, etc. One must make sure that he keeps up with the payment. You should always remember that you have pledged the most valuable asset as collateral for the loan. A potential loan borrower should not rush into things while availing a loan.
