loan against property calculator

Get Loan Against Property in Mumbai

A loan against property in Mumbai is a secured loan that is given by a bank or financial institution against the mortgage of a property in Mumbai. The property that is being mortgaged can be a residential or commercial property, and the loan amount can range from a few lakh rupees to several crores, depending on the value of the property.

The loan against property in Mumbai can be availed for various purposes such as business expansion, wedding expenses, educational requirements, debt consolidation, and medical emergencies. The loan tenure can range from 5 to 15 years, and the interest rate can vary from one lender to another. The loan amount can be disbursed in one lump sum or in instalments, depending on the borrower’s requirement.

To avail of a loan against property in Mumbai, one needs to fulfill certain eligibility criteria such as minimum age, income, and property value. The borrower also needs to submit the necessary documents such as property papers, income proof, identity proof, and address proof. The lender will then evaluate the borrower’s profile and property value to determine the loan amount and interest rate.

Benefits of loan against property in Mumbai

Loan against property is a type of secured loan that allows individuals to borrow money from a financial institution using their property as collateral. Mumbai is a city that offers several benefits of loan against a property due to its high property values.

Here are some of the benefits of loan against property in Mumbai:

1. Lower interest rate: The interest rates on loan against property are comparatively lower as compared to unsecured personal loans as the property acts as collateral. Therefore, the lenders feel secured while providing the loans and offer interest rates that are lower.

2. High loan amount: As property prices are high in Mumbai, one can expect a high loan amount while availing for loan against property. This amount depends on the market value of the property and is usually higher than unsecured loans.

3. Flexible repayment tenure: The repayment tenure for loan against property in Mumbai is usually longer and flexible. One can repay the amount in easy instalments for a period of up to 15 years, based on their convenience.

4. Quick disbursal: Loan against property in Mumbai is a secured loan which makes the process of loan disbursal quicker as compared to unsecured loans. The banks will do a valuation of the property and disburse the loan amount within a few days of approving the loan.

5. No prepayment charges: In case the borrower wants to prepay the loan amount before the tenure, no extra charges will be levied on the borrower. This allows the borrower to save on interest costs and get rid of debt at an early stage.

6. Multiple uses: Unlike personal loans, loan against property is a multi-purpose loan that can be used for education, wedding, medical expenses, business expansion or any other purposes.

Mumbai is a city where property prices appreciate over time, and hence availing a loan against property helps the borrower reap the benefits of this appreciation while getting access to funds that can be used for various purposes.

Loan against property in Mumbai is a great option for individuals who own property as it offers a higher loan amount, lower interest rate, flexible repayment tenure, and is a multi-purpose loan.

Overall, a loan against property in Mumbai can be an excellent financing option for those who need quick cash at a lower interest rate than personal loans. It is important to research and compare various lenders’ offerings before finalizing a loan to get the best deal.

Loan Against Property Eligibility Requirements

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One of the many purposes of getting a Loan against Property (LAP) could be to start your business (LAP). It can also be used for various other purposes. Property loans are available for both residential and commercial properties. A loan against property is a secured loan wherein the lender has the option of liquidating the mortgaged property to recover the loan amount in case the borrower defaults.

Longer repayment terms and relatively low-interest rates are the top two positives of taking out a loan against property. In addition, the loan is available to both salaried and self-employed professionals.

Loan against Property Eligibility  

Let’s now look at the fundamental requirements for receiving a Loan against Property. Make sure the residential or commercial property you have put up as collateral is legally owned by you and is free of any legal obligations.

The age-related loan against property eligibility requirements is listed below.

  Salaried Professionals Self-Employed Professionals Small Medium Enterprise (SME)
Age Requirements between 21 and 60 years  between 25 and 65 years Minimum 2 years old

The recommended CIBIL score is 700 or higher. Additionally, SME candidates must submit licensed accountant-audited documents of consistent earnings over the last two years.

LAP interest rates are influenced by the property type, its current market worth, your income, and much more. If you are unsure about the loan against property rates, use a loan EMI calculator to determine the same.

A property mortgage loan enables you to fulfill your company’s needs effectively. With a Fullerton India Loan Against Property, you may maximize your savings while enjoying affordable loans against property interest rates, flexible repayment options, and extended tenure of repayment.

Must Read: How Loan Against Property Helps in Fulfilling Your Dreams?

Key Aspects to Consider Before Taking a Loan Against Property

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A loan against property can provide a large sum against a pledged immovable property (residential or commercial) to fund various purposes. Whether it is funding business expansion, higher education, weddings, facing medical emergencies, or other business-related or personal purposes, a property can help individuals get funds without losing ownership. You can apply for a lap loan: 

Key Aspects to Consider While Applying for a Loan Against Property

The following are the key things one should consider while planning to apply for a loan against property (LAP): 

  • Evaluate the Property Value

The borrower should evaluate the property value they want to collateralize. It helps to know the funds the lender can provide against a property. Renowned lending institutions can offer loan-to-value (LTV) of up to 70%. 

  • Documents Required

Well-established lending institutions and NBFCs (non-banking financial companies) have kept the loan against property document requirements minimal. The common documents are the applicant’s ID proof, address proof, age proof – A certificate from the Government authority/PAN Card /Passport, salary slips, Income Tax Return (ITR) acknowledgment, and title deeds of the pledged property.

  • Repayment Tenure 

A loan against property is a long-term loan. Loan tenure is flexible enough in terms of repayment tenure. Customers can choose a tenure of up to 15 years. Select a suitable loan tenure so the loan can be repaid easily.

  • Processing Fee 

One of the fees included in the overall loan against property cost is processing fees. Consider the processing fee and any other charges levied by the lender to know the real cost of availing of the loan.

So, carry important loan against property documents and apply online with reputed lending institutions. 

Must Read: Tips to Stay on Top of your finances with Ongoing personal loans

Considering a Loan Against Property? Here are a Few Guidelines

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Getting a loan against property gives individuals the chance to fulfill their needs & requirements, and hold on to their homes and get back on track with their finances. You can apply for a property loan here: https://www.smfgindiacredit.com/loan-against-property.aspx

However, it is essential to keep in mind a few guidelines before taking out a house mortgage loan. 

  1. Take out a loan based on your current financial situation:

Borrowers need to take out a loan that they can quickly repay. If the EMIs consume too much money, other important financial goals may suffer. 

As a result, before taking out a loan against property, calculate the monthly EMI to be paid in the future using an EMI calculator.

  1. Make payments on time:

Lenders often charge a penalty if the borrowers miss an EMI payment, which raises the overall cost of the loan. Late payments also affect the credit score, which lowers the chances of getting a loan in the future. 

Therefore, borrowers must pay their EMIs on time to avoid such unpleasant scenarios.

  1. Select a loan with a shorter repayment period:

The link between tenure and EMI is inverse. The EMI will be higher the shorter the term is, and vice versa. However, it is usually advisable to acquire a loan for the shortest term possible, as the loan against property rates will be reduced.

With Fullerton India, getting a loan against property is quick and hassle-free, with competitive pricing, minimal documentation, and flexible repayment tenures. 

  1. Carefully read the terms and conditions:

To avoid unpleasant surprises in the future, it is critical to carefully read the terms and conditions. Additional fees may apply, potentially raising the cost of the loan. 

Thus, it is preferable to be informed rather than regret it later.

Additional Read: 5 Mistakes to Avoid When Taking A Loan Against Property

Points To Consider Before Applying For Loan Against Property

Introduction

A loan against property is a secured lending product, where you can use your home as collateral to borrow money for things like starting your own business, paying off existing debt, wedding expenses, or higher education.

However, before taking a loan against property in Pune, applicants are advised to consider the below points.

What are the points to evaluate before you apply for a loan against property? 

The points to consider are:

  • When taking out a mortgage in Pune, you are putting your asset at risk. This means you are at a greater risk of losing the property. Thus, it is essential to analyse the risks and determine if this is the right time to leverage your property against the loan.
  • To make sure you are making the best decision for your money, it is crucial to compare interest rates between various lending institutions. They all differ in rates, so you can compare to find the best one available. With Fullerton India, an individual can get a loan at interest rates starting at 9%. 
  • Borrowers can also compare lenders that provide them with the maximum land mortgage loan. With Fullerton India, individuals can get land mortgage loans up to Rs. 5 crores. 
  • Moreover, individuals can check whether the lender provides them with a flexible repayment tenure. With Fullerton India, individuals can get loans with flexible repayment tenures ranging from 12 to 180 months. 

Conclusion 

If you take out a loan against your property in Pune, make sure you pay your EMIs on time. Delayed EMIs can result in late payment fees and can also have a significant impact on your finances, and creditworthiness. It will also make borrowing loans in the future more difficult. 

If you want to avoid this and keep your credit score as high as possible, be sure to always make your payments on time.

Also Read : Eligibility Criteria For a Land Mortgage Loan

What is a Loan Against Property, and how Much Can I Get?

Loan Against Property

The loan against property or the LAP loans, as the name signifies, are finances got by pledging a commercial or a residential property as collateral. The funds for these loans depend entirely on the property value pledged. LAP loans are secured and have lower interest rates than unsecured ones. One can avail loan finances up to 70% of their property value. 

LAP loans offer you up to ₹ five crores based on your property value pledged as collateral if you are looking for a high loan amount.

How much loan can I get?

Using a free online tool called the LTV calculator helps you know the maximum loan amount you are eligible for. Here’s a step-by-step guide to calculating the maximum loan amount one can get based on the property mortgaged.

Step 1: Enter the Market Value of the Property

Step 2: Enter the Nature of Property

Step 3: Enter Your Monthly Income

Step 4: Enter your Existing Monthly Obligations

Step 5: Select Interest

Step 6: Select Loan Tenure

The maximum loan amount you may be eligible for, along with the approximate monthly EMI for that loan amount and the total interest payable over the loan tenure, will be displayed automatically on the screen. It will help you make an informed decision and plan your loan finances accordingly.

Your property’s age, type, value and location, monthly income, credit score, and employment history play a crucial role in determining the maximum loan amount offered to you. Hence the calculator only displays the approximate amount you are eligible for.

Additional Read: Eligibility Criteria For a Land Mortgage Loan

Factors Affecting Your Eligibility for a Loan Against Property

A loan against property is a secured loan that allows you to use the funds locked in your assets. You can pledge your property as a security and obtain a loan against it at lower interest rates. However, if you are looking for a loan against property, several factors may affect your eligibility. Let’s take a look at them.

  • Loan Amount: The loan amount you want to borrow directly affects your eligibility for a loan against land or property. The higher the loan amount you borrow, the stricter the terms and conditions would be.
  • Credit Score: Your credit score is one of the most crucial factors affecting your loan eligibility. You must have a credit score of at least 700 to avail a loan against property. Since your credit score signifies your repayment history and credit behaviour, lenders use it as a parameter to determine your loan eligibility.
  • Property’s Value: The lender evaluates the value of the property you want to secure against the loan. Your loan against property interest rate, eligibility, and loan amount largely depends on your property’s value.
  • Age: The borrower’s age matters a lot while applying for a loan against property. Lenders prefer borrowers in their prime earning years. If you have just started your career or are about to retire, it may affect your loan eligibility. That is why most lenders have a minimum and maximum age limit that applicants must follow.

Applying for a loan against land or property has become quick, simple, and streamlined through online methods. However, check your lender’s eligibility conditions and fulfil their requirements before filling your application form.

Must Read: Step By Step Guide to Know How Loan Against Property is Processed!

5 Useful Tips to Get the Best Mortgage Deal

Are you looking forward to funding your home purchase with a loan? You will find hundreds of lenders offering mortgage loans out there. These days, NBFCs make these loans readily available to borrowers. However, here are five valuable tips to get the best mortgage deal:

  1. Maintain a High Credit Score

Lenders check your credit score before approving your mortgage loan. They decide your loan amount and interest rates based on your credit score. Therefore, pay your EMIs and credit card bills consistently, diversify your credit portfolio, and reduce your DTI ratio and credit utilisation rate to maintain a high credit rating.

  1. Save More for a Bigger Down Payment 

You need to make a down payment while applying for a loan. The higher the down payment you make, the easier your loan approval will be and lower your interest rate. So, save more for a bigger down payment and get the best mortgage deal.

  1. Pay Off Your Existing Loans

Lenders look at your current financial obligations before approving your loan application. Ideally, your debt-to-income ratio should not be more than 30-40%. Therefore, pay off your existing loans before applying for a new loan to get the best mortgage deal.

  1. Select the Right Repayment Term

Mortgage loans often come with flexible repayment terms that you can choose according to your repayment capacity. Use a mortgage loan calculator to calculate your EMIs so that you can repay them on time. Assurance of timely payment can help you grab the best deal.

  1. Compare Lenders

Shop around and find the lender offering the best mortgage deal according to your requirements.

Use these tips to find the best deal on your mortgage loan and become the proud owner of your dream home without stressing your finances.

Must Read: Step By Step Guide to Know How Loan Against Property is Processed!

Top 5 Factors to Consider If You Have Taken Loan Against Property

A loan against property is a type of loan that is provided against both residential and commercial properties. However, no matter how exciting this prospect might seem, there are a few things you must keep in mind before getting a loan against a property. Let us have a look at each of these factors:

●     Value of the Property

Before you can avail of a loan, NBFCs or other lenders will evaluate the current market value of your property. The loan amount sanctioned will be nearly 70-80 per cent of the property’s total value. However, this will vary according to the lender. The eligibility criteria of a loan against land will also differ from one lender to another.

●     Interest Rate Provided

The interest rate of a loan against land is lower than the interest rates for personal loans. However, it would help if you thoroughly researched the interest rate provided by different NBFCs.

●     Tenure Offered

Most lenders provide a long tenure to borrowers for loans against property. However, like the loan against property interest rate, the tenure period differs from one lender to another. Most lenders offer up to 15 years of tenure. Therefore, keep your EMIs and tenure in mind before selecting a lender. 

●     Keeping All Property-Related Documents Handy

One of the most significant factors which might hinder your application process is inconsistent property documents and false ownership documents. So, make sure you have well-defined and clear property ownership details to avail of a loan.

Must Read: What are the Document required for taking a loan against property?

What Are the Conditions to Fulfil While Availing Loan Against Property?

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A loan against property is the loan availed by pledging an immovable property as collateral with a lender. The property can be residential or commercial. One can easily avail of loans up to 3 crores using the loan against property.

Conditions To Fulfil While Availing a Property Loan

You can avail loan against a property if you meet some eligibility terms, such as:

  1. You can pledge properties that are residential in nature. It is not a problem if your property Is occupied by tenants and is rental in nature.
  2. You can also avail loan against property using a land property type
  3. Commercial properties can be used as collateral during loan against property application provided your documents are clear,
  4. You need to have a stable income and be an employee of an established MNC, private sector or public sector.
  5. You need to have a high CIBIL score of up to 750 or above.
  6. Your age needs to be between 21 to 60
  7. You need to be a resident citizen of India.
  8. If you are self-employed, you need to show a steady source of profits for two years.

You can use a free online loan against property LTV calculator to understand the maximum loan against property eligibility based on the nature and value of your property.

To apply for a loan against a property, you can install your lender’s app and follow three to four steps. The loan will be credited in lesser time than usual due to the digital processing of documentation.

Additional Read: How to Avail a Loan Against Property Without Income Proof?

Things to Keep in Mind When Taking a Loan Against Property

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A property loan is a secured loan wherein immovable assets like property or land is pledged as the mortgage. Here, the borrower must be the owner of the property.

A loan against property is a great way to finance hefty expenses. But many borrowers tend to overlook factors that play a huge role in a LAP’s affordability. These are as follows:

Things to Keep in Mind When Taking a Loan Against Property

  • Ensure that you take up the lowest possible tenure based on your financial standing. A lower tenure ensures that the amount paid in interests is as low as possible. 
  • Property loan interest rates are slightly higher than standard loans. However, borrowers need to negotiate for the lowest possible interest rate based on their credit card score. 
  • Most property loans have a processing fee attached to them. The fee is usually 1% of the amount borrowed. Therefore, when deciding to undertake this loan, make sure you have this amount ready. 
  • If you are in desperate need of funding, LAP’s can be tricky to navigate through. Unlike instant personal loans, a LAP takes 2-3 weeks for processing and disbursal. So, ensure that you submit all the requirements correctly and on time. 

Making a financial decision is a big deal, and it is important to ensure that you have all bases covered to secure your financial health in the long run. Covering all aspects of loan taking can enable you to pay off your debt much sooner. Get started now and find a lender that offers competitive interest rates and full transparency!

Must Read: All About Loan Against Property

3 Things To Consider Before Taking Loan Against Property

You can take a loan against property by mortgaging your immovable property. It can be a house, a plot of land, or some other commercial property. Since you are offering collateral, these loans have a lower interest rate than personal or business loans. However, you have to keep certain things in mind before taking a loan against p[roperty. Let us take a look.

  1. Check The Eligibility Criteria

Do not forget to check the loan against property eligibility before you apply for one. You will have to own some immovable property. Along with that, you also need to have a stable;e income source.

  1.  Check The Value Of Your Property

Before granting your loan, the lender will consider the current market value of your property. That will determine the amount of loan you can take. Usually, NBFCs offer around 60% of the property value.

  1.  Do Not Miss Out On Other Benefits Offered By Your Lender

Various financial institutions offer a host of value-added services to their customers. For instance, they might assist you with buying the property. Moreover, they can guide you with insurance. So, ask your lender about these additional services to enhance your borrowing experience.

Lastly, always check your EMI amount with a property loan calculator. That will help you to plan your future expenses.

Final Word

Fullerton India gives you loans against property at competitive rates. Moreover, you will get flexible repayment options. So, why wait? Start planning about your new house now.

Must Read: 6 Things to Check Before Taking a Loan Against Property

Benefits of Loan Against Property

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Loan against property is a convenient way to get a loan at lower interest rates than personal loans. Unlike the personal loan, where no collateral is required, in LAP the loan is taken against property i.e. you keep your property as security in case you are not able to pay off the loan in the allotted time period. You can apply for LAP here: https://www.fullertonindia.com/loan-against-property.aspx

Benefits of Loan Against Property

If you have some property in your name, which you can use as security, a loan against property is one of the options. Some of the benefits of LAP is: 

  1. A loan against property is a secured loan. 
  2. As the property is kept as security, the interest rate is lower than a personal loan. 
  3. The tenure for repayment of the loan amount is more than in any other loan. You can also extend the time line up to 15 years. 
  4. The EMI loan Against property is lower than other loan types.

Disadvantages of Loan Against Property

While loan against property is a great way to finance your expenses, it comes with its set of disadvantages which are:

  1. The amount that one can borrow is directly proportional to the property kept as collateral. 
  2. The income laws are strict in the case of LAP as that is the only eligibility norm. 
  3. The evaluation of the property is done by the lenders themselves, and thus the value is lower than the actual market value. 

So, like any other loan, LAP also comes with its set of pros and cons. It is important that before you make any decision, make sure to evaluate both, and then decide accordingly. You can use the mortgage loan calculator to get a better idea. 

Must Read: 6 Common myths about loan against property you need to stop believing

A Comprehensive Overview Of Essentials of Loan Against Property

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In this day and age, a host of loans are provided by banks so that we can use the cash for various purposes. It can be a vehicle, a house, or a loan for any business venture etc. A relatively popular loan is the Loan Against Property which is essentially a mortgage. This type of loan is popular amongst borrowers as it allows you a large sum of money for any need or challenge that you might incur. Another attractive part of this loan is that it has easy documentation/loan against property eligibility and very flexible repayments. Add to that speedy approvals, and one can surely guess why many apply for a loan against property.

In the loan, the property is put up as a collateral or security. The state defines a loan against property as only a transfer of interest and not the ownership. It means that the borrower remains the owner of the property and the transfer of ownership will happen if the borrower defaults on the loan repayments.

The loan against property eligibility includes the proof of residence, income statement, latest bank statement. If you are an employee, you need the last six months’ salary slips. If you are a business owner, you might need to show at least three years of income before your loan is approved.

The key benefits of having a loan against property:

  1. Lower interest rates
  2. Good while availing more massive amounts
  3. Low EMI due to longer tenure
  4. The Flexibility of how you use your loan

Must Read: Advantages of Loan Against Property to Raise Funds

Benefits of a Loan Against Property

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The loan against property is a type of loan that owners of the property can avail for a large sum of money and easy low-interest repayments over 15 years usually. The loan against property is not as scrutinising as some other loans. Thus the easy approval loan against property eligibility, large sum and a more extended period of the repayments makes this a very popular loan in the world of real estate.

1. Monthly Instalments

The monthly instalments are divided in such a way that you will be comfortable paying them for years and will be deducted directly from your income. It also means that you can claim this while you are filing your tax return. You end up saving a percentage of your money by not giving it to the government. A deduction of up to 2 lakhs can be claimed every year.

2. Interest Rate

It does not matter whether your interest rate is high or low on your loan against the property; this again can be claimed in the income tax returns. Thus you will be able to save even more money.

3. Usage

It does not matter how you choose to spend the money even though this is a secured loan. This flexibility means that the loan can be used for multiple things. Whether it be to finance your business, go on a vacation or use it to buy another asset.

4. Property Type

Whether you have a residential or commercial property, it does not matter as a Loan Against Property can be acquired for both of them.

Must Read: Should You Use a Loan Against Property for Home Improvement?

Reasons Behind Rejection Of Loan Against Property Application

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Applying for a loan against property is the easiest way to get funds during financial emergencies. It is easy to meet the eligibility criteria with a little preparation. But it entirely depends on the lender to approve or reject your application. 

But sometimes it happens that a mistake cause rejection of your loan against property application. Here’s a list of 5 reasons that might lead to rejection of your loan against property application-

  1. Age Of The Property

It is one of the essential factors for the approval of your loan. The current condition of the property determines the loan tenure. If your property is new, then the loan tenure will be longer. The property’s value also determines eligibility. You can quickly check the eligibility using a loan against property calculator.

  1. Approval By Government

It is necessary to have all the documents and the government’s approval on the property. If you have lost some approval documents, then you can apply for them again. 

  1. Deviations From The Approved Property

There should not be any discrepancies or violations from the approved property. The lender might reject your application if there is even the slightest deviation.

  1. Disputes On The Property

If there are any co-owners of the property, then the application form must be signed by them all. There should not be any dispute regarding the property.

  1. Income Tax Returns

It is necessary to have filed the income tax returns for three years if you are self-employed. 

Conclusion:

Make sure to meet the minimum credit score and have all the documents in-hand before applying for a loan against property. With some research and planning, you can quickly get your loan approved.

Additional Read: Factors That Affect Tenure of Loan Against Property

Why Should You Opt For Loan Against Property?

Most financial experts suggest loan against property as a better alternative to a personal loan. Let’s have a look at some of the reasons why you should consider this financial tool when you require funds. 

Why should you opt for Loan Against Property?

As the name suggests, loan against property (LAP) is a secured loan wherein the financial institute or lender lends capital to the applicant and keeps their property as collateral till the repayment of the loan. After the applicant repays the loan, the property documents are returned to them. There are some significant LAP types – loan against industrial property, loan against commercial property and loan against residential property.

What are the benefits of a Loan Against Property?

  • More loan amount:

In the case of LAP, you can avail around 60-70% of your property’s market rate or value when you mortgage it. That means you’ll receive a substantial loan amount in contrast to what a personal loan offers. 

  • Low-interest rate:

A secured loan reduces the lender’s risk and hence is available at a lower rate of interest in contrast to an unsecured loan such as personal loans. The rate of interest in case of LAP is generally about 9-15%, which is relatively lower in comparison to the 15-22% window charged in case of personal loans. 

  • Easy to avail:

It is easier to get a LAP. Some of the standard loan against property documents required are proof of identification, proof of income, address proof, residence ownership proof, among others. The documentation, as well as the verification process, is easy, and  amount is disbursed quickly. 

Conclusion:

These were few benefits of LAP that make it an ideal choice among people who own some property. You can utilise your property while enjoying the advantages of LAP and paying convenient EMIs.

Must Read: How to Calculate Loan against Property EMIs Using Calculator?

Here’s How You Can Avail Smaller EMIs With Loan Against Property

Loan Against Property
In contrast with the past, availing funds has evolved into an easier task. You can classify the finance options mainly into two – secured loans and unsecured loans. The primary difference between both is the presence of collateral, which the banks/NBFC can leverage to provide financial assistance. Secured loans like Loan Against Property carry more significant benefits than others.

Let’s know about LAP in the following section.

  • LAP- Better interest rates:

Loan against property (aka) LAP is one of the types of secured loans that have the edge over the other loan types due to their long tenure and lower interest rates. You can use a loan against property calculator to determine the tenure, interest rates, and the monthly EMI of your loan. Here’s how you can have low monthly EMI using a loan against property:

  • Tenure:

A longer tenure means lower monthly EMI. Again it all depends on your discretion. If you need a loan with a shorter tenure, your monthly EMI can increase. A smart planner will choose an optimal tenure after devising a repayment phase that would not hurt the finances.

  • Credit Score:

Your credit score plays a prominent role in lowering your monthly EMI. Most of the lenders are happy to provide funds to borrowers with higher credit scores. On a scale of 300-900, anyone above 700 stands a better chance of availing low-interest loans. 

Conclusion: 

If you wish to leverage your assets, you can use a loan against property calculator to avail better interest rates and plan your repayment phase accordingly.

Must Read: IS Availing Loan Against Property More Cost-Effective Than Others?

Consolidate Your Debts With Loan Against Property

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Debt consolidation is a common practice among borrowers, which means taking out a new loan to pay off the previous loans quickly and comfortably. Though you can avail an unsecured loan to consolidate your debts, it is advisable to go for a secured loan as it provides a lower rate of interest. A loan against property can be one of the best options for debt consolidation. 

You can receive a loan against property from different lending institutions by guaranteeing your residential or commercial property as security. But, before you apply, it is essential to check the loan against property eligibility criteria provided by every lender. 

Now, let’s have a look at how loan against property can help you consolidate all your debts.  

1. High loan amount

By availing a loan by pledging your property, you can get a rather larger loan amount, which usually depends on your property’s current value. With such a high amount, you can easily pay your multiple debts in one go.  

2. Lower interest rates 

The interest rates are comparatively lower for the loan against property as it is a secured loan. Therefore, if you are repaying high-interest debts, then this loan can help you lower your overall EMIs and interest rates. Use a loan against property calculator to calculate your EMI and interest amount to be paid each month.  

3. Any property as collateral

You can secure this loan by pledging various types of properties ranging from your home, office space, or any other property you own. This way, you can choose the most high-priced property and get a decent amount to clear your debts.  

On the whole, loan against property is a convenient solution to not only consolidate your debts but also boost your credit score and avoid penalties.

Reference Read: loan against property v/s home loan- Which one to Choose?