|Age of the Applicant||
The applicant must be (any one):
The applicant must be (any one):
|Credit score||A good credit report with a score of at least 700 or more obtained from a recognised credit bureau|
Calculate the Equated Monthly Instalments (EMIs) payable against your mortgage loans by using the Loan Against Property EMI Calculator. All you have to do is input a few basic parameters such as your loan amount, rate of interest and loan term. The automised EMI calculator will compute your monthly payments based on the values entered.
Let us assume that you wish to avail a loan against property of Rs.10 lakh at the rate of 11.45% p.a. for a tenure of 12 years. Enter the values on the calculator as follows:
Loan amount: Rs. 10,00,000
Rate of interest: 11.45%
Loan tenure: 12 years
The calculator will compute the EMIs payable towards your loan during the tenure, in this case, Rs.12,804.
|Identity Proof (any one)||
|Residence Proof (any one)||
For Salaried Applicants:
It is always advised to consider compare loans offered by different lenders before you choose one. It is the same in the case of loan against property. Keep an eye out for offers various financial institutions are offering on their products. Since the lending market is a competitive one. Loan lenders always try to offer the best rates of interest in the market. Even a small difference in the rates can help you save a lot money in repayments. You could also consider the loan tenure each provider is offering on these loans to choose the best one suitable for you.
The loan tenure associated with mortgage tenures usually ranges from as low as at 5 years to almost 15 years in India. Though extended tenures will ensure lower Equated Monthly Instalments (EMIs) due to the low interest rates applicable on them, the total repayment in terms on money will be huge. Hence, it is advised to go for loans with shorter tenures to make sure that you do not end up paying a lot of interest on your loan.
Since mortgage loans are a long-term affair, ensure that your financial aspects are sorted out before you avail one. Take your monthly income into consideration before you apply for loan against property. You might be eligible for huge loan amount. However, it would be only wise to assess the impact of the huge repayments on your pocket. Try to reduce the burden of debt as much as possible. Ensure that the repayments are not more than one-third of your monthly income. This will leave you will sufficient funds for your personal expenses.
Many of us fail to realise the impact of a good credit score when it comes to the approval process of a loan. You credit score play a major role as it helps financial providers assess your credibility towards taking a loan. A good score will also ensure that you avail the loan at comparatively lower interest rates. In case you do not know your credit score yet, you can get your credit report from recognised bureaus such as Experian or Equifax. If you have a poor or below par credit score, you can consider improving your credit score before you apply for loan against property.
While the rate of interest associated with personal loans range from 15% p.a. - 20% p.a., the interest applicable on loan against property starts from 9.70% p.a. The comparatively lower rates can be attributed to the security factor. Since you do not provide your loan lender any form of security to avail a personal loan, the interest rate is set higher than other loans. Loan against property, on the other hand, attract a lower rate of interest as you are handing over the property to the lender as collateral for the loan. Hence, the reduced rates.
The repayment period for loan against property is again higher than that of the personal loans. Most banks/financial institutions offer a loan term of up to 15 years depending on the loan amount. However, the tenure associated with personal loans are limited to 6 or 7 years. The financial burden on a loan against property borrower is reduced considering the long tenures.
Most banks/financial institutions do not charge you foreclosure penalty on your loan against property. This allows you to clear your loan debt sooner without any additional costs. However, keep in mind that some banks charge a pre-closure fee if your make prepayments towards loans linked to fixed rates of interest.
Banks/lending institutions also provide loan against property borrowers with the top-up facility. This allows you to avail a top-up loan on your existing loan for your personal requirements or financial emergencies. The documentation associated with the top-up loan is minimal as the top-up is provided on the same property you have availed the loan against property for.
Since mortgage loans offer comparatively lower rates with extended loan tenures than that of the personal loans, the Equated Monthly Instalments are relatively lower. This reduces the debt burden on loan against property.
Since loan against property is a type of secured loan, the property ownership remains unchanged during the tenure. This means that you will be able to utilise the property as usual. Your lending will have no ownership authority over your property. However, the Title Deed and the Sale Deed of the property will be withheld by your lender until the loan is repaid.
In the case of loan against property, you are always offered the best value available for your property. Loan lenders decide on your eligible amount depending on the market value of the property you provide as collateral. Since mortgage loans are also secured loans, the interest rate applicable is also lower. You also have the benefit of retaining the ownership of the property in the case of loan against property.
The loan amount you are eligible for under loan against property scheme is directly proportional to the prevailing market value of the property you provide as security. Most lending institutions offer up to 70% of the property value. In some cases, you could also be eligible for loans up to Rs.15 crore depending on the value of the property. However, keep in mind that you do not avail a loan amount that you can afford to repay. Failure to make repayments towards your mortgage loan can result in losing the ownership of the mortgaged property.
Loan against property can be availed of various kinds of property such as a residential property, commercial property or an industrial property. Some banks also provide mortgage loans on owned plot/land.
One of the main benefits of mortgage loans is that the approval process is a quick, simple and hassle-free one. The documentation process also more or less similar to that of the regular housing loans. However, ensure that the Title Deeds of the property is free from any kind of legal disputes in order to avoid rejection of your loan application.
The loan amount you avail in these schemes can utilised for any purpose. It may be for your children’s education, medical expenditure, home renovation/repair, etc. The loan amount availed can be used for all financial needs.
The EMIs associated with your loan against property is inversely proportional to the tenure of the loan. The longer the loan tenure, the lower your payable EMIs will be. This will reduce the burden on your finances during the tenure.
You can avail loan amount starting from Rs.2 lakh and up to Rs.15 crore on Loan Against Property. However, the loan amount you are eligible for will depend on various factors such as:
Yes, you will be charged a one-time processing fee if your wish to apply for the mortgage loan. The processing fee applicable will also be non-refundable.
You can provide a commercial property or a self-occupied property free from any kind of ownership litigations as collateral to avail a loan against property.
You can make your immediate family members such as spouse, parents or children as co-applicants on loan against property. The co-owners must be the co-applicants on the mortgage loan. However, the co-applicants need not be the co-owners of the property.
Yes, you can apply for a mortgage loan jointly. With the co-borrower's/co-applicant’ income also being considered in determination of the loan repayment capacity, the maximum loan amount you are eligible for shall increase.
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