Benefits of opting for a loan against property.


There are a number of instances in our lives, when we may suddenly run out of cash, or face with an immediate emergency of funds. In such times, we all look for a way to overcome those financial hurdles. But, even at such times, there are a lot of people who are waiting to take advantage of our precarious situation and tap into our problems; mostly loan sharks. These people often offer financial assistance but with higher collateral and interest rates. However, people of today’s times have a lot of options to choose from. One of such options is making use of loan against property which is provided by a number of banks and NBFCs (non-banking financial companies). The interest rates of these loans offered by financial institutions are way lower when compared with the interest rates offered by loan sharks and other traditional financiers. Also, there are a number of banks and NBFCs (non-banking financial companies) which offer special discounts for women, in order to encourage and empower them.
The various benefits of opting for a loan against your property are as follows:
  • ·         You can acquire a certain amount of capital assistance from banks and NBFCs (non-banking financial companies) by opting for a loan against property. Thus, you can obtain a 60% to 70% market value of your property by mortgaging it with the financial institutions. You can make use of this money in order to take care of your personal needs such as medical emergency, educational fees as well as business needs.
  • ·         The repayment of these loans is done in a flexible manner of installments. These installments are calculated after computing your principal amount and the interest rate for the tenure you opt for. This helps you to plan out your repayments for the future in advance so that you never default on any payment.
  • ·         You can also opt for a top up over your current loan amount. Meaning, you can ask for a larger amount of loan, from the banks and NBFCs (non-banking financial companies), in accordance to the increase in the property prices of your property.
  • ·         Probably the biggest advantage of loan against property is the fact that you can still make use of the mortgaged property. Thus, even if you have mortgaged your property with the bank or NBFC (non-banking financial company), you can still reside in it or even rent it out to someone else.

The eligibility criteria in order to procure a loan against your property are as follows:
  • ·         You need to have a good credit history and a great credit score in order to avail this loan facility provided by the financial institution. Thus, if you have a credit score above 750, then you become eligible for the loan amount.
  • ·         Also, the market value of your property will play a determining role in your approval for a loan against property. Thus, if you have a property with good market evaluation, then you become a sought-after candidate for the banks and NBFCs (non-banking financial companies).
  • ·         You need to have a good source of income in order to become eligible for the loan amount. Also, you have to make sure that you don’t have a lot of accumulated debt from any previous loans.


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