In life, each one of us wants to succeed, earn enough money, settle themselves as well as their family. However, no matter how much you strive hard, due to inflation and other prior financial commitments you may run short of money at any point of time.
Your needs could be anything like a starting a business, home expansion, sending kids abroad for higher studies, getting them married, etc. However, this should not act as a hurdle on your way to achieving success.
To fulfill your financial needs you might either approach traditional financiers who may charge you exorbitant interest rates or sell your gold/ jewelry or piece of land may also not be a wise decision.
One of the most promising and easy way to arrange money and at attractive interest rates would be taking a loan against property. Today, leading banks and finance companies in India offers mortgage loans with attractive interest rates, longer tenure, and flexible repayment options. They play a major role in individual’s life through offering customized financial solutions that will help them fulfill their dream goals.
Lenders offer you a loan against property depending on the present market value of your property. You can mortgage your residential or commercial property to get the loan amount. Your loan eligibility depends on your credit ratings, income source, age, qualification, number of dependents, spouse’s income (if she is working), assets, debts, and job or business stability.
Once the loan gets approved it will be disbursed in full or installments as per your requirements. You can choose between fixed or floating rate
Generally, banks or private lenders offer a loan amount of interest which might have an option for part and prepayment of the loan.
Through online services, apply for a loan against property has been quite easy. If you submit proper documents and fit into the lender’s eligibility criteria your loan can be approved within 3-4 working days.
Just like any other loan, you can take a loan against property without revealing the motive for your money requirements. These days leading private lenders are offering loan against property with interest rates as low as 9.60 to 11.60% and mere processing fee of just 1.5% of the loan amount. Many people fear that when you mortgage property you lose it to the bank or lenders.
However, it is not as such. You are just availing a loan on your property and you can still enjoy the occupancy of the same. Thus, without selling your piece of land you can still manage finances to fulfill your dream goals in life.
Experts say, in order to lessen the EMI costs don’t opt for a longer tenure, because it may seem its reducing your EMI figure but its actually increasing your interest costs. Getting a loan against property seems easier and quicker, but then the repayment could be exhaustive so make sure you take the required amount only and you easily pay the EMIs from your taken home salary or net business profits.
It’s better to check your financial profile and affordability before taking the loan against property. It’s advisable to make optimum use of EMI calculators on lender’s website or aggregator sites and get a proper idea of basic debt fund structure and adjust your expenses as per requirements.