Let your property be a shelter to your
dreams. IDBI Bank Loan against Property is a multi-purpose loan that can be
used for your business or personal needs. Property Loan
Monday, 22 February 2016
Sunday, 21 February 2016
Benefits of Loan against Property to Fulfil Your Needs
Getting
the benefits of loan against property is one of the best decisions to overcome
any sort of financial crisis. The process of loan against property is quite
simple. All that you need to do is just mortgage your commercial property with
bank or any financial institution. They lend you with the amount of what your
property is valued. With the availability of loan against property you can
easily fulfil your dreams and pay EMI at rate with which you are comfortable
with.
There
are number of reasons for opting for loan against property. You can get benefit
of these services irrespective of the reasons. So now there is no need to
compromise on your dreams anymore. But the main question one has is
How to
get loan against property?
Process of procuring loan against property
The process of getting loan against property is quite simple
and hassle free as well. In the era of progressive technology, there is no need to
spend huge amount of money for filling the forms and finding for the all the
documents that are quite necessary for getting loan. The application procedure
is now very much simple as it is done completely through online. You can do this
task at the comfort of your home.
There
are number of websites that are available in this regard. These websites put
certain criteria in order to become eligible for loan against property. So you
need to check your eligibility and how much amount you can get as loan against property.
You can make use of the eligibility calculator and know about
the details this will help you to take better decision. The interest rate of
these loans varies from one lender to another. So it’s better advised to make
proper decision before you proceed. Loan against property provides you with
finance at the time of financial crisis and help you to fulfill your dreams.
Friday, 19 February 2016
All you should Know about Loan against Property
Loan against Property Loan
against property can be availed against a self-occupied residence or a
commercial house. The foremost prerequisite on the bank's part is that there
should not be any other encumbrance. Loan against Property is the most secure
of loans therefore the lending rate is normally low compared to other unsecured
loans. However, because of the configuration of lending by banks, they have a
propensity to be somewhat higher than housing loans. The eligibility criteria
for getting Loan against Property is also laissez-faire, as the property is
available as collateral. The repayment term can also be long from 5 to 15
years.
When to look
at Loan against Property?
For anyone who
has a house or commercial property and is looking for a loan, Loan against
Property should be the first option. The only loan with better features could
be the gold loan. But there could be a lot of sentiments attached to pledging
gold, so it generally gets done as the last alternative. That leaves the Loan against
Property as the better choice. Though a housing loan and the Loan against
Property are secured against the property, Loan against Property is on the
existing assets and the assessment of the property is released for productive
activity. For a businessman looking to inflate business, Loan against Property
comes in versatile as they do not have to gaze for expensive sources and the
processing is also much quicker. A few banks also give overdraft facility
against the property; this will help the business as interest will need to be
paid only for the amount used. Funding children's education can also be done
using Loan against Property; also their marriages. But as a general rule, one
has to be a cautious when taking loans for expenses.
Advantages of Loan against Property
Value of the asset owned is free for
productive use.
The interest
rate is lower than other options like a personal loan or a credit
card borrowing where the funds can be used for a wide variety of purpose
without informing the lender.
Processing is
quicker than a housing loan as the assets is already in our ownership.
Partial
pre-closure is authorized without any penalties. This is an advantage as the
overall interest burden or the tenure of the loan can be abridged by paying
small additional amount.
If the
assessment of the property has risen over a period of time, a re-financing
option can be used to augment the loan amount. This aspect again is very
constructive for businessmen, who are on an expansion spree. They can use the
same property to constantly build the business.
The property
continues to be in the possession of the borrower.
Some
disadvantages of Loan against Property
Banks usually do
not give loans beyond 60 per cent of the assessment of a house property and 50
percent of a commercial property.
New businesses
generally cannot have access to Loan against Property.
They should have been in continuation for at least 3 years. Salaried persons
can get it if they are in employment for over 1 year itself.
There will be
some processing charges usually in the range of 0.5 percent to 1 percent.
Friday, 5 February 2016
Loan against property scores over personal loans
A loan against property (LAP) is
exactly what the name implies — a loan given or disbursed by mortgaging
property. The loan is given as a certain percentage of the property's market
value, usually around 40-60 per cent. It belongs to the secured loan category
where the borrower provides a guarantee by using his property as security.
The borrower
can either opt for an overdraft option where he is required to pay interest
only on the amount withdrawn or a lump sum loan amount. The disadvantage of an
overdraft facility is that the interest rate charged may be higher, in some
cases up to 0.5 per cent and also annual processing fees will be charged.
Additionally, only banks can offer the overdraft facility as other financial
institutions do not offer savings/current accounts.
In case of a
lump sum loan, processing fees are charged only once when the loan is taken and
also the individual can approach either a bank or financial institution for the
loan.
WHY LAP?
Long tenure
loans: For individuals requiring funding for a long period of time, LAP can
come very handy because the tenure of these loans can be a maximum period of 15
years.
Large Loan
amount: Individuals requiring substantial funds also should consider this
option as a large loan is possible. Of course it depends on the property value.
There is no restriction as in case of personal loans where the maximum loan
permissible is Rs 10 lakh.
Lower rate
of interest: On account of the house being the collateral, the rate of interest
charged by loan against property
banks tends to be much lower than personal loans.
You can
normally take a loan against your self-occupied or rented residential property.
This could be a house or even a piece of land.
Source: https://loanagainstproperty.quora.com/Loan-against-property-scores-over-personal-loansThursday, 28 January 2016
Home Loan or Loan against Property? Picking the better investment
A home
loan is a loan that is advanced to you by a lender to assist you in buying a
house. This amount needs to be repaid to your lender in monthly instalments.
If you
apply for loan against property, you will receive a loan against the mortgage
of your property. This means that your property is your security in the event
that you are unable to pay back the loan. This loan is usually between 40% to
60% of your property’s value, and can sometimes go up to 70%. You can take a
Property Loan with benefits like EMI-free months and Zero-Penalty Foreclosures.
What’s great About These Loans?
Home loan:
Home loan:
- Your capital goes up: Property prices in India
have been skyrocketing over the past decade. Buying a home is the best
investment you can make to tackle inflation, and ensure that you have a
large reserve of funds in the future.
- Easy interest rates: Home loan interest rate is
much lower than most loans – anywhere between 9.50% to 13%. This makes
repaying a home loan cheap and easy on your finances. To apply for home
loan at lowest interest rate, and you can avail of rates that go as low as
9.75.
- Renting vs. Buying: Buying a house is expensive,
but can prove to be profitable in the long run. Buying a house means paying
EMIs every month, but with the surge in property values, you’ll have a
valuable asset by the end of your loan tenure. If you rent a house, the
increasing real estate prices will result in an increase in your monthly
rental payments.
Home
loans are also quickly processed and disbursed, so you won’t have to deal with
delays when you apply for this type of loan. You can apply
online for home loan at Bajaj
Finserv, or you can transfer your existing Home Loan!
Loan against Property:
- It’s
your property: When you apply for loan against property, you still maintain
ownership of your property. This means that you continue to live in your
own home and make monthly loan payments to retain your ownership.
You can
sell it if you want to: If you’re unable to make monthly payments or feel like
you won’t be able to in the future, you could sell your property. Since the
loan is only a percentage of your property’s value, you can repay the loan and
be left with surplus funds.
Plot loan interest rates:
The
tenure for a property loan can be anywhere between 1 – 15 years. The average rate of
interest lies
between 12% and 17%. The combination of these factors ensures that property
loans are easily repayable.
You can make more money:
If you’re
a businessman who has taken a plot loan in India, you can expand your business
using your property. With rising property prices, you can refinance your
property at a higher value, which will grant you an increase in your loan
amount. Using the additional funds, you can work towards business expansion.
Both
types of loans have benefits that make them ideal for different situations. If
you’re looking to buy a house, availing a home loan would be the best option
because it’s the reason that home loans are provided. If you’re in need of
quick funds, taking a loan against property is a good option. You can pledge
your property as collateral and use the funds for any activity you desire; the
lender cannot question what you spend the money on.
It’s not
hard to decide which of these loans to choose, because both these loans are
utilised for completely different purposes.
Source: https://loanagainstproperty.quora.com/Home-Loan-or-Loan-against-Property-Picking-the-better-investment-1Thursday, 21 January 2016
Home Loan or Loan against Property? Picking the better investment
A home loan is a loan that is advanced to you by a
lender to assist you in buying a house. This amount needs to be repaid to your
lender in monthly instalments.
If you apply for loan against property, you will
receive a loan against the mortgage of your property. This means that your
property is your security in the event that you are unable to pay back the
loan. This loan is usually between 40% to 60% of your property’s value, and can
sometimes go up to 70%. If you visit the website, you can take a Property Loan
with benefits like EMI-free months and Zero-Penalty Foreclosures.
What’s great About These Loans?
Home loan:
Home loan:
- Your
capital goes up: Property prices in India have been skyrocketing over the past
decade. Buying a home is the best investment you can make to tackle
inflation, and ensure that you have a large reserve of funds in the
future.
- Easy
interest rates: Home loan interest rate is much lower than most loans – anywhere between
9.50% to 13%. This makes repaying a home loan cheap and easy on your
finances. To apply for home loan at lowest interest rate.
- Renting vs. Buying: Buying a house
is expensive, but can prove to be profitable in the long run. Buying a
house means paying EMIs every month, but with the surge in property
values, you’ll have a valuable asset by the end of your loan tenure. If
you rent a house, the increasing real estate prices will result in an
increase in your monthly rental payments.
Home loans are also quickly processed and
disbursed, so you won’t have to deal with delays when you apply for this type
of loan. You can apply online for home loan or you can transfer your existing Home Loan!
Loan against Property:
- It’s your property: When you apply for loan against property, you still maintain ownership of your property. This means that
you continue to live in your own home and make monthly loan payments to retain
your ownership.
You can sell it if you want to: If you’re unable to
make monthly payments or feel like you won’t be able to in the future, you
could sell your property. Since the loan is only a percentage of your
property’s value, you can repay the loan and be left with surplus funds.
Plot loan interest rates:
The tenure for a property loan can be anywhere
between 1 – 15 years. The average rate of interest lies between 12% and 17%. The combination of these
factors ensures that property loans are easily repayable.
You can make more money:
If you’re a businessman who has taken a plot loan
in India, you can expand your business using your property. With rising
property prices, you can refinance your property at a higher value, which will
grant you an increase in your loan amount. Using the additional funds, you can
work towards business expansion.
Both types of loans have benefits that make them
ideal for different situations. If you’re looking to buy a house, availing a
home loan would be the best option because it’s the reason that home loans are
provided. If you’re in need of quick funds, taking a loan against property is a
good option. You can pledge your property as collateral and use the funds for
any activity you desire; the lender cannot question what you spend the money
on.
It’s not hard to decide which of these loans to
choose, because both these loans are utilised for completely different
purposes.
Source: http://blog.bajajfinserv.in/home-loan-or-loan-against-property-picking-the-better-investment/Wednesday, 9 December 2015
Which is a better choice—a Personal Loan or a Loan against Property?
A loan is your way out
during times when you’re low on cash. However, with the vast variety of loans
available out there, it’s not always easy to find and choose the best option.
If you’re looking to decide between a personal loan and a loan against property,
you need to know a few things about both these forms of credit before you make a decision.
Loan against Property vs. Personal Loan
The
difference between loan against property and personal loans is quite
fundamental. A personal loan is unsecured, meaning that you don’t need to put
own collateral to take one. A loan against property, on the other hand, is
secured with the property that you pledge to the lender. In order to pick the
right one, you need to find out what your requirements are.
If
you’re seeking a lower loan amount that you can quickly pay back within a short
duration of time, then a personal loan may prove to be a better choice.
Personal loans are quite easy to obtain if you have a relatively clean credit history. But keep in mind that their interest
rates are usually quite high, ranging from 14% to 21%; that’s why you need to
pay back your loan as quickly as possible. It’s a good idea to mortgage your
house only when you need a higher loan amount, for a longer duration of time.
Many
Banks offers both personal loans and loans
against property at
attractive interest rates. This banks also provides a part prepayment facility,
and lets you foreclose your loan with absolutely no additional charges.
Consider the Interest Rates
A
loan against property is known be one of the cheapest retail loans after home
loans. A personal loan, however, is definitely not as cheap. While loan against
property interest rates range from 12% to 16%, personal loan interest rates usually fluctuate between 13% and 21%.
It’s important to choose an interest rate that’s commensurate with your ability
to repay.
Check the Loan Amount
The
personal loan amount that’s sanctioned to you depends mainly on your level of
income, along with your ability to repay. The loan against property amount,
however, is dependent on the value of the property you pledge. So it’s very
likely that you’ll be offered different amounts when you apply for both these
kinds of loans. Choose a loan amount that best suits your needs.
Whether
it’s for a personal loan or a loan against property,
it’s important to select a lender who you can trust.
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