Loans Against Property
A loan against property is a loan granted against the mortgage of any type of property. Be it residential, commercial or industrial property. The borrower should declare the end use of the loan in the application form. The property is basically kept as collateral with the lender. When taking a loan, gaining the trust and the confidence of the lender is essential. Mortgaging your property is thus a reliable option. When you mortgage your property with the lender, they will have better confidence in your business. When lenders trust and bank upon your business, it is easier for us to compromise and reduce the rate of interest. This is one of the reasons why Loan against property is cheaper compared to any other type of loan.
Loans Against Property Eligibility in India
Age Factor – An individual should be minimum 21 years of age and maximum until 65 years of age in order to secure a loan against property. Some banks also consider minimum age 18 years and maximum 70 years.
Loan To Value Ratio – Banks typically look for an LTV ratio of 60% to 70% while dealing with loans against property. This ratio varies from one type of property to another. It is highest for loans taken against residential properties but the lowest for loans against commercial properties.
CIBIL Score – CIBIL stands for Credit Information Bureau India Limited. Banks and financial institutions give loans against property based on the market value or the registered value of the property. In case if you have a low CIBIL Score, some financial institutions may give loan against property with a higher rate of interest or a higher margin.
The Tenure of the Loan – The tenure for which a bank gives Loan against property varies from bank to bank. Generally, banks give loans for 15 years against the property. But there are some banks that give loans against property for 7 to 9 years.
How to get the best Mortgage loan?
Every bank has a different set of processes for Loans against property in India. Here are some fundamental steps which usually every financial institution follows:
- Check if you are eligible and calculate the EMI
We have mentioned some basic eligibility criteria above and there are specific eligibility criteria for each bank. Check the criteria and see if you are eligible for the loan. Calculate the approximate EMI which you would have to pay.
- Property and legal documents
The property against which you are taking a loan should have all the documents clean and ready. Some common documents asked by financial institutions are, Registered Sale Deed, Past Sale Deeds Chain, Latest House Tax Return, Approved Building Plan from Municipal Corporation and so on.
- Explore Loan against property interest rate offers
After checking the documents, you can now research about the interest rates and the different options available. There are usually fixed and floating rates. Fixed ones are generally a bit higher than the floating ones.
- Compare miscellaneous charges and loan parameters of the banks
Financial institutions charge various additional fees in addition to the interest rate. Be aware of all their extra fees like processing charges, prepayment charges and so on and so forth. We at Terkar Capital can help you with this entire procedure.
- Other parameters
While finalising upon the financial institution or bank do check the other factors involved like the turnaround time of the banks, quick loan delivery, transparency and such other parameters. Try to read reviews of the existing and past bank customers in order to help you decide.
Why Terkar Capital?
- Wide range of lenders
We at Terkar capital have a huge contact base of lenders.
- Customized solution to your financial requirement
At Terkar Capital, we believe in customizing financial solutions for each and every customer. We understand that every customer has different requirements, and thus we give relevant and the best financial solutions to our customers according to their requirements.
- Justified valuation of the property
Terkar Capital will give you a justified valuation of the property. We see to it that the valuation of our client’s property is done fairly and that he gets a justified valuation for it.
- Faster turnaround time
We have an excellent reputation for fast turnaround time in the market. We will see to it that the process from submission of documents to the completion is done as fast as possible.
- Best in industry Loan Against Property Interest Rate
Terkar Capital assures its clients about the Rate of Interest provided. We will negotiate and get the Best Possible interest rate for you.
- A team of experts
We have a well trained and experienced team who work relentlessly on your projects. We make sure that we help our clients select the right lender who suits their borrowing requirements.
- Transparent Process
Terkar Capital strongly believes in Transparency during the whole process starting from the submission of documents until the very end. We will listen to your requirements and suggest the best possible financial solutions for you.