What are things to check for Loan against Property?

Loan against property is a loan that is given by Banks and NBFCs to any person that owns a property. The reason why you might have not heard a lot about this loan is that people only opt for this when they require a huge loan amount. 

In India, the majority of Banks and NBFCs provide loans against property to any person that owns a property. This property can be anything from residential to commercial or industrial. It is also considered to be a secured loan that means there will be an asset that will be kept as collateral.

Because of this being a secured kind of loan, it is highly possible to get a lower loan against property interest rate. Yes, the interest rates are lower than most of other loan types because of the secured factor.

Is there a loan against property eligibility?

Yes, we must keep you aware of the criteria that have been set by Banks and NBFCs in India. These criteria must be fulfilled by a person if they wish to apply for a loan against property.

  • Individual’s age – 18 years+
  • Indian citizen
  • Owner of a property (residential, commercial, industrial)

Things Banks check when you apply for a loan against property?

  • Banks will check if you fulfill the basic criteria.
  • Post that they will check your property papers and evaluate your property.
  • This valuation will consider all factors right from year of purchase to current market rates and the real estate industry. 
  • Once that’s done, they will give you up to 45-70%* of your property’s value as the loan amount.

Please remember that loan against property is for people that wish to own a huge amount to clear expenses and emergencies like higher education abroad, medical emergencies, etc.

It will be wise for you as a loan applicant to maintain each document of your property. If documents are not fully complete, then your loan application will take a longer time to get approved. Hence if you wish to get the loan amount in a quick span of time, then maintain all documents.

If you wish to get the best loan against property (mortgage loan) experience, kindly contact us on our website and Apply Here!

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