Loan Against Property: Guaranteed Way of Arranging Funds

Person can get a loan against property only if a person provides collateral to the bank in the form of commercial property, house or flat. Person can use this amount for any personal purpose such as going for a vacation, for paying bills, house extension, initiating new business, education, house improvement, business expansion, marriage expenses, and purchase of goods, debt consolidation and many more. A loan against property means a loan given or disbursed against the credit of the property. Person can avail loan against property as a certain percentage of the property market value which is around 40% to 60%.

Person can get a loan against property from several banks such as Fullerton, ICICI, Standard Chartered, SBI, Axis, PNB, HDFC, DHFL, Reliance Capital, First Blue, India Bulls and many more.

The various features of loan against property are:

·         A person can use this loan for any purpose or need whether it is professional or personal.

·         The Person can get a loan against property on fully constructed property.

·         Person can get a loan at the cheapest interest rates. Banks provide two types of interest rates such as fixed rates and floating interest rates.

·         Person can get an amount of loan up to 60 to 65% of the market value. It depends upon the person property or flat.

·         The client can pay off the loan amount through EMI or monthly installments.

·         Person has to pay off the amount of loan range from 10 to 15 years.

·         Loan against property is a secured loan.

·         The process of loan against property is easy, convenient and hassle free.

·         The banks charge 13-18% of the rate of interest on the loan against property amount, which totally depends on the amount of loan and person's profile.

·         Person has to get minimum of Rs.10 Lakhs for getting loan against property.

·         A person can get a loan up to Rs.10cr.

The tenure provided by the bank is 10 years. The loan amount needs to be repaying in the form of EMIs. In any case, person want to avail loan more than 25 lakh, person need to mention the reason for getting a loan. The loan amount person can get against property can range from 10 Lakhs to 3 crore. This amount is depending upon the property person pledge. The amount of the loan also varies from bank to bank. The age limit of person lies between 21 to 60 years.