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WHAT ESSENTIALS TO AVOID IN LOAN AGAINST PROPERTY?



Sometimes, many people experience financial crunch that is difficult to handle without any external financial support. One can tackle this situation by borrowing money from friends and friendly or you can avail a loan product from lending institution. There are various types of loans that are offered by banks and NBFCs in the lending market.

As far as you are concerned with the security of loan, you can "Apply For Loan against property" which you could get on your residential or commercial property. One can also get benefit from an online mortgage loan application from the comfort of your personal space. All you need to upload the required documents to complete the loan procedure and to get the disbursal.

Whenever you avail a loan against property, there are some essentials which you can’t avoid at any cost. Here in this blog post, we have considered such essential things which are listed below:

Valuation of property: There are two types of properties that can be mortgaged with lender to avail a loan against property. A lender will evaluate the current market price of the property which you want to pledge for loan. The lending institution can sanction the loan amount up to 75-80% of the value based upon the valuation and submission of property papers.

Interest rate: The rate of interest for loan against property is much lesser as compared to rates charged on Personal Loan. Moreover, the interest charged on mortgage loan many vary from one lender to other, so don’t rush into the process of availing a instant loan. For instance, the rate of interest will vary for loan against residential property with different lenders.

Tenure for the loan: Most of the lenders provide longer tenure for the repayment of mortgage loans. However, the repayment period usually differs from lender to lender but being a borrower, one has to maintain a balance between tenure and EMIs.

Always remember, if you have a longer tenure, the compounding factor comes into picture of floating rate of interest which might affect your monthly installment. 

Processing fee: Every lender charge the processing fees on loan as per their lending norms. To illustrate, it may range from 1-2% of your approved loan amount. Therefore, one should not be seceded solely based upon rates of interest. Besides that, it’s better to consider processing fees charged while taking a loan against property.

Ownership of the property: One can provide the property as security for loan which is legally free of any issue otherwise lending institution will reject your loan application if the property to be pledged is in dispute or having incomplete documents. If you have joint owners then their consent id must while you "Apply For Loan against property Online" or offline.

Hence, a loan against property is the best available option for you being a property owner to fulfill all your financial needs. Always choose a lender who offers you the best deal that suits your requirements as well as is trustworthy. Explore all the benefits and features of the LAP before availing it.


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