The bank allows you to avail a loan against your property (or your house), as this is a secured loan (Your house/property is the collateral).
The bank has a due diligence process (The bank appraises your house/property and assesses its value).You are sanctioned a loan up to 60-70% of the value of your property.
The bank charges you an interest of around 12-16% for a loan against property .This is much less than the interest rates charged for a personal loan. The tenure of the loan against property is around 10 years.
This loan is secured against property and you can avail a higher amount of loan, than a personal loan.
Bank offers you competitive interest rates. Interest rates are much lower than a personal loan.
Property remains in your name. You can use the money to expand your business or even for a wedding.
Documentation is easy as property is in your name. Loan processing time is much faster than a home loan.
Your title of the property needs to be clear and marketable.
Your bank lends an amount equal to about 50-60% of the value of the pledged property.
If you are salaried, you need to have a minimum age of 21-24 years and your maximum age can be around 60 years at maturity of the loan .If you are self employed , your maximum age can be 65 years at maturity of the loan. You need to have a minimum work experience of 1-5 years if you are salaried, and you need to be in business for at least 2-5 years if you are self employed.
Past credit history plays a very important role in getting your loan against property sanctioned. The Cibil score plays a very important part and if your past credit history is poor, your loan is liable to get rejected.
You require to fill the loan application form with 2 passport-sized photographs.
You need an identity and address proof.
You need the last 6 months salary slips if you are salaried, and certificate and proof of business and income if you are a self employed professional or a businessman.
You need a form 16 if you are salaried, and the last 3 three years Income tax return and Profit and Loss and Balance Sheet if you are self employed.
02 May 2016, Monday
You are going through bad times….tough times…You need money in a hurry. Where do you get money in these difficult times? Should you go for the famous emergency or any time loan…The Personal loan…Is it wiser to opt for a loan against property? What is a personal loan? Pe...
11 August 2015, Tuesday
Your son will soon be in college and plans to do an MBA. You urgently need money for your daughter’s marriage. A personal loan immediately comes to mind. The interest rates charged by the bank for the personal loan is quite high. (The interest rates could be as high as 14-22%). How would ...
02 February 2015, Monday
Life is all about seizing the moment. A business needs to be started at the right time. Paucity of funds can be a serious dampener to the starting of a business. This is where loan against property comes in handy. This kind of loan helps in procuring funds needed in an emergency as well as for per...
18 July 2012, Wednesday
Formalities for a health insurance claim You can make a claim under a Health insurance policy in two ways: On a Cashless basis and A Reimbursement Claim On a Cashless basis: For a claim on cashless basis, your treatment must be only at a network hospital of the Third Party...
14 March 2014, Friday
As the name suggests ELSS invests the whole corpus in equities. Proportions as high as 80-90% of equities are found in an ELSS Fund. It is a special kind of mutual fund that qualifies for tax benefits. Basically Equity Linked Savings Scheme is a mutual fund with a lock in period of three years and...
07 January 2014, Tuesday
One of the most common reason for family feuds in India as in the rest of the World is faulty estate planning. Estate planning is a neglected topic in India mainly because of the emotions attached to it. A common reason people neglect to make a will or indulge in estate planning in their younger yea...