Are you short of funds to fulfill personal needs like educational expenses or a big family marriage? The best way to resolve your cash crunch is to take out a loan. But there is a variety of loan options to choose from. There are secured loans as well as unsecured loans. Some serve the purpose of buying property; some provide financial assistance.
For personal needs, you have options like credit cards and personal loans. But the interest rate they charge is quite steep. That’s why many people opt for mortgage loans these days.
Two major benefits of this type of loan: lower interest rate and longer tenor.
You can always check your loan against property statement by visiting the lender’s website. Upon entering your loan account details, you can view and download your loan account statement.
Here are a few things to know before you start the journey.
Loan Against Property Features:
Higher Repayment Tenor: Unlike personal loans, a loan against property tenure is much higher. The repayment tenor ranges from 10 to 20 years. This helps the borrower get adequate time to repay the loan. Besides, opting for a longer tenor reduces the EMI burden significantly.
Lower Interest Rate: A lower interest rate is another benefit of this type of loan. The interest rate is much lower if you compare it with unsecured loans like credit cards and personal loans.
Maximum Loan Amount: We all know that a property is always highly priced. Commercial property is generally worth more than residential property. Loan against property solely depends on its valuation. So, you will get a larger amount by pledging the property.
Easy Repayment: As you are borrowing a large amount, you will be given ample time to pay off the loan. The flexible repayment option helps you choose a convenient tenure. You can settle for monthly installments. There are also prepayment and part pre-payment facilities which you can avail by paying a minimal charge.
Before you approach the lenders, do your homework and bag the lowest rate.
Loan Against Property Eligibility Criteria:
Here is what a borrower’s profile should look like-
- He/she should be a salaried or self-employed professional.
- Salaried individuals should be between 33 and 58 years of age.
- The borrower needs to be a salaried employee working in a private company or MNC.
- The borrower should be a resident of India and own a property in his/her name.
Today, most banks and non-financial companies (NBFCs) like Bajaj Finserv offer loans against property. India is a country where the loan approval process is also easy.
More To Read: SBI CSP
Loan Against Property Documents Required:
Remember, your property documents are very important to get the loan. So, keeping them at hand is necessary to avail the loan. The documents mentioned above should be kept in order at the time of application.
As proof of residence (any one of the following):
- Aadhaar card
- Voter ID card
- Ration card
- Electricity bill
- Telephone bill
As proof of identity (any one of the following):
- Aadhaar card
- Voter ID card
- Driver’s license
- Employee identity card
For income proof:
- Latest bank statement or passbook showing past six months’ salary details
- Salary slip showing all deductions for the past 6 months
- Form 16 for the last 2 years
- Copy of the documents of the property to be pledged
Along with these documents, you need to have a good CIBIL score for loan approval. Having a good credit history makes easy the loan approval process.
Enter some of your loan account details and check the loan against property statement to keep in touch with the current situation.
NBFCs likeBajaj Finserv brings you pre-approved offers for, home loan, personal loan, and EMI finance on different products and other financial services. Not only does this simplify the process of availing financing, but also helps you save on time.
Summing Up
Loan against property gives you quick access to funds for realizing personal or business needs. You can avail such loans easily in a hassle-free manner. You can also check your loan against property statement at any time you wish to get a clear picture of the credit scenario.
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