Mortgage loans, or loans against property as they are also called, are one of the best modes of finance available for your financial needs and requirements. If you own a property in your name, whether residential or commercial, you can mortgage the property with a lender and avail a loan against property. The loan offers you the following benefits –
● A high quantum of funds which can be used for any personal or business-related need that you have
● A high repayment tenure over which you can easily and affordably repay the loan without facing a financial strain
● A low rate of interest on the loan, which starts at 8.80%. The rates are low because the loan is secured against the value of the property and so the lender faces a low risk of default
● A lot of loan options to choose from as banks and non-banking financial companies offer the loan at attractive and competitive interest rates
● Easy availability of the loan if you fulfill the prescribed eligibility requirements and submit the relevant documents
● Retention of usage of the mortgaged property which can also be let out on rent so that you can earn a rental income even though the property is mortgaged against the loan
These benefits make a loan against property a very popular and viable means of finance. To avail the loan, you should do the following –
● Check whether you meet the eligibility parameters specified by the lenders. The parameters consist of your age, income, occupation, employment stability, and credit score
● Compare the interest rates charged by different lenders offering a loan against property and then choose a loan offer which has the lowest rate of interest
● Get the property valued by the lender’s independent evaluator.
● After the lender gets the property evaluated, the amount of loan is calculated
● The loan amount is expressed as a percentage of the value of the mortgaged property. The percentage depends on the type of property that is mortgaged
● Fill up the application form, pay the processing fee, submit the property documents as well as your documents and get the loan approved
● Once the lender scrutinizes the application and verifies the documents, the loan is disbursed
After you get a loan against property, you can use it for various uses, some of which include the following –
● For funding your or your children’s wedding
● For taking a much-awaited trip with your family
● For meeting any type of medical emergency
● For renovating or refurbishing your home
● For meeting the working capital requirements of your business
● For buying fixed assets for your business
● For paying off other liabilities that you have which incur very high-interest rates
Since a loan against property is a type of personal loan, there is no limit to the reasons for which the loan can be used. So, what are you waiting for?
If you need funds and you have a property to your name, mortgage it and avail a loan against property. Understand what the loan is all about, how you can avail it and what are the benefits which the loan provides and use the loan to its fullest potential.
READ:- Key Benefits to Avail Loan Against Property
