Regardless of whether you are a mindful saver, there might be times when you need budgetary help to hold over the entirety of the sudden urgencies. A significant number of you may like to profit cash from your companions and family members, yet it may not be a smart thought to strain their accounts. A superior choice is to utilize your own benefit for example house to take financial assets against it.
Features of Loan Against Property:
A Loan wherein you promise your home to the bank to benefit advance is known as Loan Against Property. It is a secured loan where you can get a higher amount at least 80 – 90 % of your asset value.
It is cheaper than a Personal Loan as it is a secured loan and hence the interest rate is very less as compared to an unsecured loan. It is a loan with maximum tenure, and personal debt is a loan with a shorter loan period.
Flexible Loan Tenure Period:
The loan tenure for such loans is 20 years. It is a secured loan and hence the Interest Rate is very less. A longer tenure period offers a person advantage for easy repayment of the whole loan amount without affecting much on your personal budget.
Process of Loan Against Property:
Loan Against Property can be taken for some private or business property. It is made sure about credit taken against any freehold property, for example, a house or a plot of land. It is a loan with low-Interest rates as compared to other loans.
When you approach the bank for taking this loan, the bank will check the documents related to your property. Bank will ask for your residence proof such as electricity bill, ration card, or telephone bill. Even you will also have to submit your identity proof such as passport, PAN card and Voter Card.
If you are a salaried person, you will have to submit the last 6month bank statements. On the contrary, if you are a self-employed individual you will have to submit a list 2 years’ 2-year financial investment.
Factors Determined by Bank:
While offering a loan, the bank evaluates different parameters of the person such as:
1. Working Profile
2. Age of the borrower.
3. Credit Score
Income proof of the last 3 years is mandatory for Property Loan. The Minimum Age for availing this loan is 24 Yrs and the Maximum Age is 65 years.
The most important thing a bank evaluates is your credit score. If you have ever defaulted on your bill payments, you will not be eligible for availing this loan at any cost.
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