The first thing people think of when they need money to satisfy an immediate need is to take out a loan. Many face trouble deciding which loan is the best for them. While some concerns are reasonable, financial experts feel that a mortgage loan, often known as a loan against property. It is one of the most secure loans available. In comparison to the other options, it also has a cheaper interest rate.
If you have a well-maintained property in a major city of India, then you don’t need to liquidate it to arrange a large amount if your need funds. Why?
It is because you can avail of a loan against property (LAP loan). It is secured finance, and that’s why one can manage lower loan against property interest rates.
Read on and know about the loan against property in this quick post. Most crucially, it allows the borrower to use the value locked up in their property. They continue to live there for the duration of the loan.
Features of a Loan Against Property
Most lenders offer a variety of features and perks on loans against properties, many of which are tailored to the needs of clients.
Loans with No Contact
Applicants merely need to fill out an application on the company’s website, after which all coordination is handled by phone or email. The final leg of the journey, where you must sign the loan agreement and complete other registration processes, is the only one where you must meet the representative in person.
A Substantial Loan of Rs. 5 Crore* or Higher Is Available
Applicants with a solid credit history, income, and employment history can apply for a large loan sum of Rs. 5 crore* or even more, depending on their qualifications. To put it another way, the amount of money available is never an issue.
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First External Standard Linked Credits in Industry
With many lenders these days, borrowers have the option of taking out loans with loan against property interest rates tied to external benchmarks like the repo rate. They may be able to take advantage of regulation rate reductions here.
72-Hour Disbursal Process
From start to finish, most lenders promise to provide speedy and painless processing. Applicants not only benefit from minimum documentation, but they may also expect unrivaled turnaround times. The money is disbursed in 72hours* after the loan application is approved and validated.
Online Management of Accounts
Consumers of top-notch lending institutions have access to an online client portal, where they can do a variety of duties from the convenience of their own homes. Without needing to visit a bank, one can instantly obtain statements and complete transactions.
If a borrower seems to have a high credit score and pays their EMIs regularly, there are not many better alternatives than a loan against property (LAP). Know why.
LoanSanctions Are Available To Anybody
A loan against property is available not just to salaried individuals, but also to self-employed professionals and business owners. In the case of a mortgage loan, the eligibility is the current property valuation along with the borrower’s income. In addition, the loan amount and terms are determined by credit history and age.
Aids in the Obtainment Of A Significant Sanction
A borrower is qualified for a second mortgage of up to 70–75% of the existing property’s value, based on the lender’s policies. Borrowers could also benefit from the typical long tenors allowed in a loan against property (up to 18 years for salaried and 14 years for the self-employed borrowers). One can also consider repaying the loan against property. To do so, it is suggested that they plan their finances ahead of time using an online LAP EMI calculator.
End-Use Is Not Restricted
A mortgage loan allows you to conveniently manage all of your large-ticket purchases. A borrower can use the money obtained through a loan against property for a variety of purposes, including weddings, debt consolidation, foreign education, and home acquisitions. Because of the considerable sanction that a mortgage loan entails, it can easily cover all of these costs.
What are the benefits of applying for a loan against property?
- A huge amount
Based on your eligibility and other factors, you may get an amount of up to Rs.5 crores from top-ranked lenders in India.
- No restrictions on funds usage
You are free to use the loan money for anything as per your needs and without a lender’s restrictions. You can use it for business expansions, weddings, home renovations and much more.
- Faster loan approvals
Anyone having the required eligibility and submitting documents is given loan approvals within 24 hours.
- Quick funds disbursals
Once your LAP loan is approved, you can easily enjoy quicker funds disbursals within 72 hours.
- A longer repayment tenor
Once availed, it is possible to repay a loan against property over a longer tenor of up to 18 years.
You can also use a LAP EMI calculator available on a lender’s site to know the exact payable EMI amount and plan finances without hassles.
How to Submit a Mortgage Loan Application
A borrower must complete the following steps to apply for a loan with any lender online:
- Visit the lender’s official website and go to the Loan against Property section.
- Before applying, the borrower should check their eligibility for the mortgage loan.
- They should also check other details, such as the interest rate and other fees. If they are comfortable moving forward with the mortgage loan application, they can fill out the application form and upload all required documents.
- An OTP will be sent and that will need to be validated.
- Once done, in about 24 hours the lender’s representatives will get in touch with the borrower.
- The lender is expected to sanction the loan amount in about a week or less after the verification is completed.
The interest rate, loan tenor, processing fee, and other parameters of LAPs offered by various lenders may differ greatly depending on the applicant’s property, credit profile, and risk appetite. As a result, comparing loan options from as many lenders as possible is crucial before deciding on one.
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