Loans Against Property Unlock the Value of Your Property

Loans against property refers to a secure loan where you can use your own property as a collateral to borrow money from lender { bank }. It has a lower interest rate compared to unsecured loans like personal loans or car/bike loans.

Deep description of Loans Against Property

1. You need to collateral your own valuable property like :- residential, commercial or industrial consider as your security for your loan. 

2. The loan amount you borrow from lenders its depends on your property’s market value , as per rbi guideline lender will give you 70-80% of your property of current market value.  

3.  A loan against property generally comes with a lower interest rate than unsecured loans

4. loan against property are come with longer tenure repayment plan , usually it can be 15-20 years , depending your eligibility as per lenders. 

5. loan against property amount will be used for various purpose such as business expansion, education  home loan renovation, wedding planning , however you can use as per your requirement. 

Eligibility criteria for loans against property

Ownership:- you must have legal ownership of your property. 

Income:- you must have a stable income source which will be you provide replay ability of your loan.  

Property title :-  your property should have clear tittle not dispute. 

Document required for loan against property  

• Property papers  
• Proof of address  
• Proof of identity, such as Aadhaar card, PAN card, or passport.
• Proof of income, including documents like a salary slip, bank statement, or income tax return.

How to apply for loan against property  

1. You can apply online or offline by various website or through bank  
2. You have to submitting necessary document which is already you can seen above . 
3. The lander will verify your property valuation and eligibility criteria. 
4. After the verification of your property the lander will be finalise your rate of interest and tenure. 
5. As per your approval or a lender approval your amount will be disbursed.     

Which bank has best rate of interest for loan against property? 

Axis Bank 10.50% – 10.95%

Bank of Baroda 10.85% – 18.60%

BOI 10.10% – 12.60%

Bank of Maharashtra 10.45% – 11.95%

Central Bank of India 9.75% – 13.00%

Federal Bank 12.60% onwards

Godrej Housing Finance 9.75% onwards

HDFC Bank Limited 9.50% – 11.00% (floating)

11.80% – 13.30% p.a. (fixed)

ICICI Bank 10.85% – 12.50%

IDFC First Bank 9.00% – 16.50% (floating)

9.00% – 20.00% (fixed)

India Shelter Finance Corporation Ltd. 13.50% – 24.50%

Karur Vysya Bank 10.20% – 12.95%

L&T Finance 9.50% onwards

LIC Housing Finance 9.50% – 11.55%

PNB Housing Finance 9.24% – 15.00%

Punjab National Bank 10.40% – 12.75%

SMFG India Credit Company Ltd.

(Formerly known as Fullerton India Credit Company Ltd.) 13.00% onwards

State Bank of India 10.00% – 11.30%

Tata Capital Housing Finance 9.00% onwards

UCO Bank 10.85% – 12.00%

Union Bank of India 10.45% – 13.10. 

Advantages or Disadvantages  for loans against property

Advantages;-       1. Lower rate of interest    

                               2. longer tenure  

                                3. 70-80% higher amount of your property    

 Disadvantages:-    1. Loss your property 

                                 2. long legal process to apply               

 Conclusion

A loan against property is a great financial option to borrow money from a lender or bank. You can use the borrowed money for any purpose you choose. However, loans against property come with both advantages and disadvantages.

You can collateral your own property and borrow money and repay your loan amount on time and get back your valuable property.