by soumya Pandit
Published Mon, May 8th 2017, 15:15 | Advertising
People need urgent money at some or the other point in life. It might be for daughter’s marriage or sending kids to foreign for higher studies else laying the first stone of their new business. It means you require money required at every walk of life. During such dire needs if you approach traditional financers they are bound to charge extremely high interest rates with no flexible ways of repayment. However, if you own a property it can be prove to be the best option to get the funds to meet your financial emergencies.
Loan against property comes with many advantages that make it a better option amongst all the other forms of loans such as traditional finances, personal loan, etc.
Loan against property are available at lower interest rates, flexible repayment tenure and fair amount of time to repay the loan. It’s also more beneficial to prioritize this loan among all the available loans.
Some benefits of taking loan against property are as follows:
Property Ownership
The most common misconception amongst people is that the bank or finance companies will now own your property. However, it is not as such, even if you take the loan against your property you’ll continue to have the ownership, which means you can still use your property for living purpose. It is only the documents of your property are kept with the bank and you enjoy the occupancy of your place. In case, you’re unable to repay you can sell the property to clear off the debt and use the surplus amount in near future.
Interest rates:
LAP is a secured loan and the processing is quite fast compared to new home loan. The fact that you keep a property mortgage with the bank or non-banking firm assures them with security. Interest rates on such loan are as low as 9.60% to around 12% with a mere processing fee of just 1.50% or Rs 4500 to 5000 whichever is higher. It becomes quite affordable and easier on your pockets.
Pre-Closure
In case you win a jack pocket, a good salary hike or other gains through any fund investments and wish to pre-close you can make pre-closure payments without any penalties. The advantage is you can lower your burden of interest rate and tenure of the loan, by making partial pre-closure payments.
Long Tenure
With LAP you can get around 60 to 65% of the property value as loan amount. It depends on factors like age of the property, age of customer, credit score, location and other important factors. The repayment tenure will be a maximum of around 15 years. So, you can have ample time to think and plan your monthly installments towards loan repayment.
Documentation
Certain documents required for Loan against property would be Pan Card, Aadhars Card, Voter ID and utility bills like electricity bill or telephone bills, KYC documents for. There are financial documents as well depending on your profession, whether you are salaried or self-employed and your property documents to apply for suitable loan
Lot of banks and finance firms have come up with online application services so that you fill up form, attached then necessary documents, upload a scanned copy and apply for loan against property at the comfort of sitting at your home or offices.
So, fulfill your dream with easy Loan Against Property finances!