Make use of your idle property and avail a loan against the same. You can now grow your business or achieve your personal financial goals by simply using your property. Loan against property in India is a secured loan that is availed by the hypothetical of the property. Based on the value of the property, the loan amount will be determined. The eligibility for the loan requires a minimum age of 25 years and the applicant should be salaried, a manufacturer or a trader. For an applicant to apply for a loan against property, it is extremely important to have complete documents of the property. The property should not be older than 50 years and should have a minimum value of Rs.50 lac. The application procedure is simple and transparent. Once the application form is filled and the necessary documents have been submitted, the application will be reviewed. The financial institution will assign a valuer to determine the market value of your property and based on the same, the loan amount will be fixed.
Usually 50% to 60% of the value of the property is approved as loan. The higher the value of the property, higher will be the loan amount. The flexible repayment tenure ensures that the loan can be repaid with ease. Loan against property in India has a peculiar feature which every borrower needs to understand. In case of a continuous default in the payment of monthly installments, the financial institution may gain possession of the property and auction it later on. This means you could lose the possession of your property if you do not repay the installments on time. Since the loan is secured and is attached to your property, the financial institution will be able to take action against the same.
The loan can be availed for personal as well as commercial purposes and any property can be used for the same. Individuals who have rented out a property or are currently living in one can use the property for the loan. The property should have a clear title and in case there are joint owners of the property, they can be co-applicants for the loan. Loan against property in India’s considered as a safe option due to a number of reasons. Firstly, the loan amount is usually higher as compared to any other loan, the tenure is long and flexible and the interest rates are low. It is important that the borrower scouts the market to obtain knowledge about the current interest rates and the terms and conditions offered by different financial institutions. Based on the same, the application for a loan can be made. Once the valuation procedure is complete, the loan will be approved within no time. Holding a positive credit score helps in the quick processing and approval of the loan.The loan is usually approved within 10 to 15 days and there is a transparent procedure of application that is easy and convenient to follow.