As the name says it all, loan against property is the loan a person gets from the bank or financial institution against the mortgage on his property
Loan against property is the best answer to deal with all kinds of funding requirements. It is one of the most preferred options for: acquiring a new asset, vehicle, business development,commercial ventures, etc.
Many individualsoften prefer the loan by mortgaging the house property is far better than a personal loan in Chennai and rest of the country. Reason is a loan against property is one of the cheapest retail loans after home loans. Since the rate of interest is lower, Equated Monthly Installments (EMI) turning out cheaper than any kinds of loans. More importantly, another added advantage of Loan Against Property is that the maximum loan eligibility is determined primarily by the value of the property and income. So, the borrower in Chennai or any part of the country, the loans will be distributed according to the value of the property
A mortgage loan is form of a secured loan, which helps customers to raise funds to solve their financial obligations which could be either business or personal. Due to various flexibilities, people opt for a loan against residential plot or a loan against land property to fulfill their dreams and invest in a new commercial property.
The borrower only needs to repay the loan against property which is mortgaged along with the interest amount levied as a borrower’s charge. The borrower finally becomes the owner of the new property once the repayment is completely done for the mortgage, which will be released back to his/her possession.Finally, Mortgage loan against property is a good investment for debt consolidation.
Loan against property in Chennaiis evolving as a primary sector for bank and other financial institutions. Due to presence of large capital, we are strong enough for providing easy top-ups for any kinds financial requirements.
The bank or any financial institutions often look at customer’s repayment capacity. For calculating the loan amount, some of the following are taken into consideration. Income, age, educational qualifications, number of dependents, spouse’s income, assets, liabilities, professional – stability and continuity and savings history are also view. However, the eligibility of loan does not, generally, exceed the fixed percent of the market value of the property, which is determined by the bank or any financial institutions.
When it comes to repayment, customers can repay the loan over a maximum period of subject to loan amount. In many cases, the repayment term will not ordinarily be extended beyond the age of retirement (if the customers are employed) or above 60 years, whichever is earlier. However, many banks or financial institutionswill change the repayment period to suit their convenience and financial position.
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Eligibility criteria will vary from one bank to another. However, the common factors that all banks or financial institutions are :
Some banks and financial institutions might check if the age of the customer is least 25 years of age when the loan is sanctioned. They could also demand Business Continuity Proof for 5 years.
Most of the bank or financial institution in Chennai and in the rest of the country would appoint an independent valuerwho would visit the property. After taking its measurements, valuer would check whether the construction is as per the approved map plan by the competent authority in Chennai.
The valuer would evaluate the value of the property at current prevalent property prices in the locality or area of the property in square meters or square feet. Age of the property and its condition would also be taken into consideration. Note that the value is not related to the circle rate or ready reckoner rates as these may not always be in line with the market rates.
For big ticket loans they could get valuation reports from two or three independent valuers and then calculate an average of the two to determine the value of the property for calculating the maximum loan possible. Most banks or financial institutions would often insist upon a clear and marketable title with full property chain. Since, they need to get the value of the property offered as mortgaged. Besides, properties offered as security must be situated within permissible limits of Great Chennai Corporation and if it is constructed it must be approved by competent government authorities. Moreover, documents like property tax receipts also add value to customer’s loan.
Interest rates on loan against property range at affordable rates and the loan tenure can be up to 15 years.A loan against property is one of the easiest ways to raise money. The only point one must remember is that if the borrower is not able to pay the loan fully, the bank or the financial institution has the legal rights to take possession of the mortgaged property. So it is always wise to base the decision upon one’s repaying abilities.
Repayment capacity is often calculated from the surplus income (monthly disposable income) and other factors such as spouse’s income, assets, liabilities, stability of income. One of the major concerns of the bank or financial institution is make sure, how the loan is repaid on time. If the monthly income is higher, customer will be eligible for a larger amount.
A minimum of Rs 5 Lakhs
A maximum of Rs 50 Lakhs
We offer the appropriate details regarding property loans at affordable interest rates, all you have to do is read them thoroughly.. !!!