Loans against property may be availed by salaried as well as self-employed people. Self-Employed persons or businesspersons take such a loan to meet cash flow needs, since such a collateral helps raised a large sum of money for lower rates. Salaried individuals may use such a loan to meet large expenses such as a wedding in the family, or education of a child.
Being a secured loan, such an arrangement may unlock the value of your property to put to use the money for various personal as well as business purposes, which could vary from expanding business to sudden and emergency expenses. Easy availability makes this product popular, as some lenders are ready lend you up to 70 percent of your property value. The terms and conditions offered in terms of interest and repayment are also better compared to other loans. Additionally, you can avail tax benefits on this type of loan, and if you plan to pay back the loan earlier than the loan tenure, some lenders don't even charge you a prepayment penalty.
You may avail a LAP against any type property. The property may be a house, a piece of land, a commercial property, or an industrial property.
Rates of Interest are comparatively low on LAPs as such loans are secured loans against property.
Most lenders offer you a facility to transfer your existing loan against your property, and such offers allow you to save money.
The LAP process happens to be a streamlined and transparent process, which gives you the benefit of quick approval.
The term Amortization Schedule refers to a complete table of periodic loan payments showing the principal amount and the interest amount comprising each payment until the complete repayment of the loan at the end of the term.
The term Negative Amortization on the other hand refers to an increase in the principal balance of a loan caused by the failure to cover interest due on the loan.
For more details check Loan Against Property Eligibility Criteria & Calculator
Age plays an important role in determining the calculation of a LAP; an applicant should be maximum 65 years of age at the time of maturity of the loan.
Income reflects the applicant's income stability and repayment capacity of a loan.
A lender decides the value of a LAP, generally a percentage of the value of the property mortgaged. The maximum value can be 90% of the property value.
Credit score reflect your creditworthiness in terms of repayment capacity based on past records.
The job stability of a salaried or self-employed applicant plays an important role in determining the calculation of a LAP.
Your mortgage Loan EMI depends on three factors.
Use the following mathematical formula to calculate you EMI.EMI = P x r x ( 1 + r ) n / [ ( 1 + r ) n - 1 ]
The slider method does not need you to key in the preferred numerical figures. Moving the slider to the required range from a given range gives you results simultaneously. The results are displayed as follows.
For more details check Loan Against Property EMI Calculator