Loan Against Property Is The Best Ways To Lend Money From The Banks Or Financial Institutions

There are various reasons for opting loan like abroad education for your children

, investment or finance for your business, funding medical treatments or even finance for your children marriage. The first thing which would come into your mind is to opt for loan against property. As all of would these problems will be resolved with the money that would be obtained from the loan from bank. Out of the most loans that are available in market, the loan against property would be easier to be obtained from the banks as they would issue the loan on behalf of the security.

It can be figured out by the name itself which implies a loan given or taken against the mortgage of the property. The loan would be calculated as a certain percentage of the property's market value which would be usually around forty to sixty per cent of the property. Loan against property belongs to the secured loan category since the borrower assures the guarantee by giving his property as security to the banks. Loan against property can be obtained against the self-occupied residential property which could be a house or even a piece of land.

There are certain criteria to be followed for obtaining loan against property. The factors may vary from bank to bank like the income, debt obligations, savings, cost of the property mortgaged or repayment track record on credit cards, other loans, etc. Interest rates on loan against property may vary from twelve per cent to sixteen per cent, and the tenure can be up to fifteen years.

The documents which are required for applying for a loan against property will be differed from persons depend on their working categories like salaried employees, self-employed professionals or self-employed businessman. These may also differ from bank to bank. Generally the loan against property in Delhi, Nodia, Gurgaon will be issued to salaried employees when compared to business professionals as they are more number of salaried employees. The banks or financial institution issue the property loan for employees by acquiring application form with a neat photograph, identity proof, resident proof, latest salary slips, form-16 or previous year and last six months salary slips while issuing the loan to business professionals, they acquire application form with a neat photograph, resident proof, identity proof, education qualifications certificate, business existence proof, last three years income tax returns and business balance sheet.

Loan against property is the best ways to lend money from the banks or financial institutions but the only disadvantage of such a loan is that when the borrower is not able to pay the loan then the bank or the financial institution have right to take possession of the mortgaged property. Hence the ways of income should be estimated or calculated before opting for this kind of property loan else the property would be in great trouble. In NCR regions, previously these loans were repaid by the customers in time before recession but during the recession it was very bad time for banks to get the repayment from customers. But currently, banks are issuing the property loan as the recession effect seems to be ended.

by: victor sharma

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