Finance

Everything That You Need To Know About Getting A Loan Against Property 

A Mortgage loan also known as loan against property is a type of loan offered by banks, NBFCs, and housing finance organizations against commercial or residential property. Generally, the loan against property interest rate is relatively low. So, it is quite a reasonable option. Learn more as you read. 

What Is The Loan Against Property Amount To Avail?

It depends on the property you own that the lender will decide your loan against the property amount. Generally, these lenders will comprehensively run across your property and develop a percentage of its market value for the loan. Typically, people can acquire a loan running up to 70% of the property’s market value. This is what is known as the loan to value ratio. For example- if your property is worth Rs 2Crore, but the LTV ratio is nearly 50%, then you can be allowed to avail of a loan of up to 1 Crore without any inconvenience. So, we always advise people to choose the lenders wisely to obtain the best value for their property. 

What Are The Different Properties To Pledge As Security? 

If there is any property that you own as collateral, you can instantly pledge it as security, irrespective of commercial or residential. But make sure that the property is on rent or self-occupied in most cases. It can also be an idle asset. Now, you may also consider taking a loan against the land. This is availed to you by several lenders today. Generally, a loan against a plot helps to purchase a specific land. But you need to know that if you fail to repay the loan, then you might put your asset at a massive risk. So, you may want to consider that carefully before you take your next step. Also, please take a look at your mortgage loan interest rate too. 

When Can You Buy a Loan Against Property?

There can be many possible reasons for you to go with this loan. Some of the most crucial reasons are: 

 

  1. Business Expansion 
  2. Debt consolidation 
  3. Family Wedding 
  4. Overseas Education 
  5. Medical Treatment 
  6. International Trip 

What Is The Eligibility Criteria For Mortgage Loan?

Most people forget to take a peek into the loan against property eligibility. But you need to consider them before you move ahead. 

  • Age

Generally, people must be nearly 33 to 58 years old if they are salaried. However, the age limit is between 25 to 70 years for the mortgage loan if one is employed. 

  • Income

Make sure you are a salaried employee working in a private firm. You can also be working in an MNC or a public sector. If you are self-employed, having a regular income source is imperative for you to avail mortgage loans.

  • Property 

Keep in mind that the asset is free of litigation. It should also have insurance against fire and other natural calamities throughout the loan tenure period. 

The Bottom Line 

Do not forget to use a loan EMI calculator online if you face any inconvenience regarding your ability to afford this. 

Also, check for the Loan against property interest rate at Standard Chartered Bank, & avail property loan of up to 70% of its value. 

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