The word Loan Against Property means when you apply for a loan against already owned residential or commercial property & end use of the fund could be investment in business, renovation of property, extension of property, education expenses or a foreign trip etc…
- Home
- Mortgage Loan
Mortgage Loan
Mortgage loan or loan against property means the borrower takes a loan which is secured against his current residential or commercial property. The benefit of mortgage loan is that it considers the market value of the property as on date. As such, the borrower can get higher amounts of loan. Best is, the loan money can be used to meet financials requirements of any kind.
- Salaried Individual
- Self Employed Individual
- Professional Individual
- NRI's
- Company
- Working capital requirement
- To fill short term financial requirement
- Business Expansion
- To set up new business
- Debt Consolidation
- Home Extension or Renovation
- Marriage, Travel or Education
- 10 Lac to 30 Crore
- Decided on Market Value of Property
- Decided on repaying capacity of the borrower basis income documents
- 5 yrs to 15 yrs
Home Loan FAQ's
What is Loan Against Property ?
Can I get an in-principle / Pre-Approval Letter and actually avail of the loan later ?
Surly, In-principle / Pre-Approval letter can be issued to you based on your income. After receiving letter you can plan your budget for property.
What is the validity of this letter ?
Validity of an In-principle / Pre-Approval letter varies from 30 days to 90 days, depending upon bank to bank.
What are the time line to process a loan application ?
In Retail loans 7 working days once documentations are completed
Is it possible to apply jointly with spouse or other blood relative?
Surly joint application can be processed but decision varies bank to bank.
What security do I have to furnish?
Since this is a housing loan thus bank requires a mortgage of the property for which the loan is being taken.
What are the processing fees charged by the bank?
Processing fee in housing loan varies bank to bank, normally it’s start from 5000.00 to 0.50% of loan amount.?
What is EMI?
EMI stands for Equated Monthly Installments. This installment comprises both principal and interest components. EMI is based on the loan amount, rate of interest and the repayment period.
How much is the loan tenure?
In Home Loan bank do offer loan from 5 yrs to 30 yrs which varies bank to bank & age of the borrower.
Can I prepay the loan? Are there any penalties?
Surly Part-Payment & Prepayment in housing loan can be done at any stage. There is no Part-Payment & Prepayment penalty applicable if loan is on floating rate of interest. If loan is on fixed rate of interest then Part-Payment & Prepayment charges varies from 1.00% to 2.00% bank to bank.
What is the benefit of taking bank loan if even I have enough money to buy a property at my own ?
Taking a bank loan is always advisable as it gives you various benefits as below … 1. A Housing loan as it would enable you to get tax exemptions as per Income Tax rules. 2. A Housing Loan can be given by a bank only after all the due diligence of legalities of property so you are always secured in term of property. 3. A Good Loan track record makes bank more comfortable to fund you in case of big requirement in future