Whenever you plan to get a loan. There is a term that you will hear a lot. Which is “Loan Against Property”. Now you might be guessing what is loan against property. Well let us help you by explaining it in detail. Usually you’ll hear this term whenever you’re planning to buy a high end real estate property or a house. But what is it really?
Well Loan against property is a type of loan which can be availed by anyone by keeping your commercial/residential property as a collateral. It is a type of secured loan. As you are keeping a property as a collateral and the amount of loan that will be sanctioned to you will depend on the property you keep as a collateral.
Why is Loan Against Property Issued?
There are various reasons as to why one can go for a loan against property in ahmedabad. It can be to fulfill his own personal desires such as making a foreign trip, a big wedding, educating your children, starting a new business or simply to expand the business, or it can even be for buying a new land, house or a real estate property.
What Is The Criteria For Loan Against Property?
The amount of loan that will be sanctioned to you will depend on the property that you desire to keep as a collateral. Normally the lenders follow the standard practice and offer 65% of the value of your property. With the interest rate of 10% – 16% and 15 years of repayment tenure. The interest rate and repayment might differ. As some lenders (or banks) do offer some kind of promotional offer to attract more customers. So make sure to check through the available offers with the preferred lender.
What Are Different Types Of Loan Against Property?
- Self-owned residential property
- Self-owned and self-occupied residential property
- Self-owned but rented residential property
- Self-owned piece of land
- Self-owned commercial property
- Self-owned but rented commercial property
What Is The Eligibility For Loan Against Property?
Every lender has their own norms and protocols. But generally they go through your assets and liabilities. Which includes your credit score, income details, savings, and employment track.
Your property which you plan to put as a collateral will be considered based on the market value of the current time and the loan amount will be created accordingly.
What Is The Required Credit Score For Loan Against Property?
A Loan against property is a type of loan where you get a loan by keeping one of your property as a collateral. So credit score is not given that much importance as compared to business loan or personal loan. But having a credit score above 750 can help you get better deals on the interest rate and longer duration period.
Can We Add A Co-Borrower In Loan Against Property?
Yes you have the option to add a co-borrower. Which can help you in maximizing the loan amount and adding a woman as a co-borrower can help you get some discount on the interest rate.
Also the co-borrower doesn’t have to be the co-owner in the property. He/She can be anyone. Generally a co-borrower is always a close family member.