Are you in need of money? Are you facing a severe financial crisis but don't know how to get out of it? If you own a property, you can remain assured. It is now easy to ask for loan against your property. This is also known as property lending or mortgage. It is the kind of loan where the borrower keeps his property as a collateral. The borrower signs an agreement with the source that is providing him the loan. In most of the cases, the bank is the lender. The payment is made for a certain time and after the expiry of the term, the borrower has to pay the amount back to the lender.
How Does It Work
Borrowers who decide to secure money out of their properties are in dire need of money. They usually have a very hefty investment to make, but they don't have means by which they can accomplish their task. Thus, they decide to use their property as collateral. There are different lending sources which offer various kinds of loans against properties. The buyers need to assess which deal works the best for them before they finally settle for a plan. You may have to try different lenders to search for the best deal.
Who All Are Eligible For The Loan
If you are a salaried professional, you can secure a loan against your property if your age is between 33-58 years and you are an Indian citizen. The same applies for people who are self-employed. However, the only difference is that those who are self-employed and are trying to take this loan should be aged between 25-70 years.
What Are The Documents Needed
Have a look at the loan against property documents required:
If you are a salaried professional and you are willing to "APPLY FOR A LOAN AGAINST PROPERTY" you will have to present your latest salary slips, a document for photo identification, your bank account statement for the last three months, your address proof, IT returns, and a copy of all the documents that are related to the property which you want to mortgage.
If you are self-employed, you will have to present your bank account statement for the previous 6 months, your address proof, your Aadhaar card or PAN card, and a copy of all the documents that are related to the property which you want to mortgage.
Interest To Be Paid
There are different kinds of loans that are categorized based on the terms, the rates of interest, and the amount that has to be paid in each term. The supply and demand of loans against property varies from time to time. Depending on this "LOAN AGAINST PROPERTY INTEREST RATES" can also vary largely. Sometimes, the banks offer interest rates which are very low whereas sometimes, the rates can be comparatively high. As the interest rate keeps fluctuating, if a borrower agrees upon some high rate of interest and the interest rate drops later on, he can sign a new agreement which will state the new lower rate of interest. This procedure is known as "Refinancing".
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