Best Property Loan

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

Loan against Property – Best Option of Financing

There are many option of getting loan. You may apply for personal loan, business loan, home loan etc. However Loan against property is the best option of financing. You may get low EMI, Low interest rate and long tenure loan if you opt for Loan against Property

What is Loan against Property (LAP)?

• Loan Against property is a secured commercial long term credit/loan facility provided by the Banks and NBFCs.

• Under this facility, property owned by the borrower is mortgaged as a security for the loan availed.

For what purposes, LAP can be availed?

• LAP can be availed for both business and individual requirement purposes

• Business Purpose – business expansion, long term corporate loan, machine purchase, property purchase where loan is not possible, etc.

• Individual Purpose – child's education, child's marriage, property purchase where loan is not possible, renovation of existing house, etc.

What are the main features of LAP facility?

• Loan amount ranges from Rs.15 lacs to Rs.50 crores

• Maximum loan of up to 70% of the market value of the property offered, could be availed

• Higher tenure of 10 years to15years is available for easy repayment

• Lower annual interest rates (11%-14%) as compared to personal loans and unsecured business loans (16% - 22%)

• Lower EMI (Equated Monthly Installment) for better monthly funds management

• Faster process for sanction and disbursement of loan as compared to corporate loans

• Simple and easy documentation

• Both salaried and self employed individuals can avail the loan, apart from firms and corporate.

• Option for loan prepayment is also available

• In case, the loan is used for business purposes, whole of interest amount on the loan could be booked under business expenses

Who Can Apply for LAP?

• Any Individual or Company / Firm can apply for Loans against Property, having a good credit history, regular income and owns a property.

How to get / apply for LAP facility?

• Borrower may submit his requirement through online simple application form available on our website or may call us at 011-42427191.

• Our trained financial advisors will guide you for all your loan related queries and provide the door step services for availing the LAP facility from the bank of your choice.

• We are authorized channel partners of various private/public sector banks and major NBFCs.

Source: https://medium.com/@anilsurma333/loan-against-property-best-option-of-financing-1a8e70e66dc2#.4kxywi9og

Getting the Money you Need with a Loans against Property

The modern economy is not living up to expectations. Unemployment is high, and middle class wages have been stagnant. This has made it incredibly difficult to stay solvent. The truth is that many people are a few bad days away from bankruptcy.

If you're worried about your financial situation, you may want to look at a personal loan. By getting a loan, you can get the money that you need to live. Obviously, no two loans are ever alike. Before you apply for a Business Loan, you need to educate yourself on finances. If you know what you are looking for, it will be easier for you to make an informed decision. You should know how much money you need to borrow, and you should also know how long you will need it for.

If you're interested in applying for a personal home loan, you need to understand the concept of collateral. By offering collateral, you can usually secure a low interest rate. This will also allow you to increase the size of your loan. Collateral can take many forms. Anything valuable will work well here. To get the best results, you should consider using your home. Obviously, it's important to be as responsible as possible here. If you are careless, your home could be repossessed. Make it a priority to be on time with every payment. Keep in mind that every lender is unique. You should only work with a lender that is trustworthy and honest.

When it comes down to it, getting a personal home loan is all about defining your expectations. To get started, think about how much money you need to borrow. Avoid any lender that tries to persuade you to borrow more money than you need. Once you know how much money you are trying to borrow, you will be ready to start looking for Loans against Property.

Generally speaking, it makes sense to talk to as many lenders as you can. If you can, ask for a few quotes. Remember that it's to your advantage to learn as much as you can before applying for a loan. By shopping around, you should be able to secure more reasonable interest rates. It's important to be accurate and honest here. You should know your precise income before you talk to anyone. This will help you find a home loan that meets your demands.

Source: https://www.apsense.com/article/getting-the-money-you-need-with-a-loans-against-property.html

What you need to know about a Property Loan

A loan against property is a loan that is given against the mortgage of property. The loan is provided at a certain percentage of your property’s market value, usually somewhere between 40% and 60%.
The loan against property interest rates make them more attractive than personal loans. If you were to take a personal loan, the interest rate would be 16% – 21%. Taking a loan against property means you pay interest at the rate of 11% to 14.50%. This difference is because your property is guaranteed against the loan. If you avail the services of Finance, you can get up to 3 months off on your EMI payments.

How the Bank Goes About It

The mortgage loan process includes the following:
If the property you mortgage has more than one owner, all of you will have to apply together to get the loan.

You can take a loan for any freehold property – from a plot of land to your house. It doesn’t matter if you’ve rented out the house or if you’re living in it. For more types of loans against property, avail financial services, and you’ll get a wide range to choose from.

The bank checks all the documents related to the title of your property, like electricity and telephone bills, for residence proof. They also need identity proof like your passport, PAN card, or voter ID card. If you’re employed, they need your bank statements for the past 6 months, and if you’re self-employed, they require your financial statements for the past 2 years.

The minimum age at which you can borrow a loan is usually 24 years, and the maximum age for an employed person is 60, and a self-employed individual is 65.

The bank also reviews your CIBIL or credit score and goes through your payment track record. Keeping a good CIBIL score will increase your chances of getting your loan application approved. Based on all of this information, your bank will ascertain your capacity for repayment and provide you with the loan if they are satisfied.

Here’s Why You Should Take One

Now that you’ve understood how loan against property works, opting for one is great choice if you’re ever in need of money. Here’s why:

The tenure of an LAP (Loan against Property) is longer than most other loans. You can get one for a maximum period of 10 years. Since their rate of interest is lower, and they have such a long repayment time, it’s a cheaper option than any other loan.

Just like any other loan, you can take a LAP without disclosing your motive for the loan. Like a home loan, partial prepayment as well as full prepayment is allowed with regard to LAPs. This prepayment is generally free from penalties. If you contact Bank, they can provide you with a loan of up to 21 crores on your property. Find out more on their loan against property FAQ.

The property continues to be under your ownership even after you receive the loan. In case you are unable to pay back the loan, you can sell your property and settle the debt. This will also help you procure additional funds.

If the value of your property increases, you can refinance it to increase the loan amount. So if you’re a businessman, it’s the an excellent option for you to expand your business.

The processing of an LAP is much faster than a house loan as the property already exists. You can also continue to live in your home while making use of the mortgage money.

Your asset does not lay idle, as its value is utilised by putting it to productive use.

As a general rule, be cautious while taking out a loan; it must be backed up by solid reasons and assurances that you can repay it. If you need money immediately, a Property Loan is a simple way to procure quick, liquid cash.

Source: http://blogs.rediff.com/loanagainstproperty/2016/03/25/what-you-need-to-know-about-a-property-loan/

Loan against Property Overview

Personal Loans are usually of two types i.e. secured personal loan which is secured against the mortgage of immovable property, insurance policies, gold jewelry, investments, etc and another is unsecured personal loan which does not require you to pledge anything.

Mortgage Loan commonly known as “Loan Against Property” in India is a secured loan that is sanctioned against fully constructed, freehold residential and commercial properties.

Some of the key factors are given below for your consideration before you apply for Loan Against Property.

Purpose

Loan against Property is normally taken for funding various personal or business needs of an individual e.g.

· Business Expansion

· Education Expenses of children

· Marriage expenses in the family

· Purchase of home

· Improvement or Extension of existing Property

· Medical Treatment

· or Any other personal Need.

Eligibility

The applicant for the loan should be:-

· Minimum 21 years of age

· Salaried Individual

· Self Employed professionals / non-professionals

Applicant should be the owner of the property and all co-owner has to compulsorily be co-applicant to the loan, however the co-borrowers need not be the co-owner to the loan.

Loan Amount

Typically you can get up to 50% – 60% of the value of the property or twice your annual income (whichever is lower) as a loan against property. The maximum loan amount is normally between Rs. 5 – 10 crores, but can be extended in some cases depending on the borrowers profile

The final loan amount is dependent on host of other factors like income and regular outgoings, existing loans, repayment track record, valuation of the property by the lender, etc.

Rate of Interest

Loan against Property is normally available on Floating as well as Fixed rate of interest. Most of the lenders will offer fixed rate of interest with a reset clause of 2-5 years which means that your fixed interest rate will be reviewed every 2-5 years and can be increased or decreased as per the terms and conditions mentioned in the agreement.

Repayment

Most lenders offers maximum tenure of 15 years but it is also restricted by the borrower’s age at the end of the tenure so as to ensure that the loan repayment ends on or before the retirement age of the borrower which is usually 60 years for salaried and 65 years for self-employed borrowers.

Fees and Charges

The processing fee for Loan against Property may vary from lender to lender but is usually up to 2% (excluding service tax) of loan amount.

The loan can be foreclosed any time on the payment of applicable penalty, however if the loan is taken on floating rate from the BANK then the borrower need not have to pay any foreclosure charges as the RBI has issued notification banning penalty of prepayment of all floating rate loans.

Documentation

To start the loan process, the lender will require proof of:-

· Identity

· Age

· Residence

· Income

· Property Documents including Title Deeds, chain of documents (if resale) and no-encumbrance certificate

One thing that needs to be noted is that if you are planning to buy a residential property, then it is advisable to take a Home Loan as they are cheaper, available for a longer tenure up to 30 years and lenders finance up to 90% of agreement value of the property as home loan as compared to Loan Against Property..

In case you are unable to get home loan due to any reason then you can take the loan against property.

[Source: http://www.apnapaisa.com/loan-against-property-overview/]

Property Loan

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

4 Credit Tips for Buying a Home

1. Pay Down Debt/Rapid Re-Scoring

Some mortgage lenders have a credit doctor service, known as rapid re-scoring, available through their credit reporting company. This service allows them to run statistical credit modeling: the lender plugs in a certain credit score needed, an algorithm analyzes your complete credit portfolio and outlines what can be done to get you to that aforementioned threshold.

Oftentimes, high credit utilization (the amount of debt you are carrying versus your total available credit) is the culprit for a low score. In those instances, paying down certain credit accounts could make you more creditworthy — and mortgage eligible — within short period of time.

2. Time

If buying a house is a longer-term goal, time can be your friend. Credit history is a large component of a healthy credit score. Make your payments on time, keep the amount of debt you are carrying low and avoid late payments of any kind. These smart spending habits show that you are responsible with your obligations and will bolster your credit score eventually.

3. Quit or Resolve Disputes

In order to get a Loan against Property, you generally cannot have any accounts in dispute on your credit reports. At the same time, simply removing a dispute from your credit report can make your credit score drop. The reason? Credit scoring models generally ignore information being disputed, like an account with a late payment, which would otherwise hurt your credit score.

In order to circumvent these problems, work to resolve any disputes. (You can find more about getting errors off of your credit reports here.) You can also consider handling any issue you may have with a lender directly in lieu of filing a formal dispute with the credit bureaus. Here are some tips for negotiating with creditors.

4. Put More Money Down

Putting more money down to buy a home could put you in an entirely different mortgage category and help you bypass certain credit scoring problems.

Remember, if you have been told “no” by a bank or lender, you owe it to yourself to get a second or third opinion. What’s more, your credit score could improve from month to month, depending on what’s holding you back, so keep an eye on it in the meantime.

[Source: http://blog.credit.com/2016/03/4-credit-tips-from-a-mortgage-pro-139033/]