A loan against property is a type of secured mortgage loan. Banks and NBFCs in India offer loan where a borrower has to keep his/her property as mortgage to the lender is known as loan against property.
Here we have answered some simple questions on loan against property:
Q. Against what type of property one can get a loan against property?
A. Banks and NBFCs in India offer loan against property to their customers for residential as well as commercial property. This includes flat, apartment, bungalow, shop, offices, commercial complex etc.
Q. How much loan one gets in loan against property?
A. Banks and NBFCs offer 60% to 70% loan amount of the current value of the property that is being mortgaged.
Q. What is the interest rate in loan against property?
A. The interest rate for loan against property in India starts from 10%*.
Q. What is the tenure of loan against property?
A. The maximum tenure for loan against property in India is of 20 years*.
Q. What are the eligibility criteria to avail a loan against property?
A. Banks and NBFCs have very specific eligibility criteria while processing a loan against property application. The criteria changes as per the profession of the loan borrower. Here are some of the main and generic eligibility criteria to get a loan against property in India:
- The applicant should have regular income.
- The property should be in the name of the loan applicant.
- The applicant should have a strong credit score.
- The applicant should be more than 25 years of age.
- The property which is to be mortgaged should not be under any legal dispute.
Q. How can you use the funds taken from loan against property?
A. One does not require disclosing the reason to bank/NBFC to take a loan against property.
- For debt consolidation
- For business purposes
- To pay emergency medical bills
- To fund a wedding
- To fund a family trip, etc.
Q. Why you should take a loan against property?
A. There are many features and benefits of loan against property. Some of them are listed below:
- You can avail maximum funds.
- Easy to pay by EMI.
- Quick loan approval and instant disbursal.
- Low interest rate compared to other unsecured loans.
Click here to apply for a loan against property today!