Enjoy Year End discounts on Loan against Property

We all know how useful loan against property is for getting easy cash to grow your business or realize your other dreams. Here is one more reason for you to look at availing loan against property in March 2015 in case you need money.

Banks are offering exciting discounts on mortgage loans to meet their year-end disbursement targets and also passing on the benefit of recent repo rate cut by the RBI.

Loan against property calculator-MyLoanCare.in

Banks are keen to grow their loan base as the financial year draws to a close. As banks compete with each other to get customers, they are willing to offer lower interest rates and processing fee discounts like never before. Some of the key offers available in the season are:

  • Loan against property starting at 11.50% per annum compared to card rates of over 13% from leading banks
  • Overdraft facility at 11.60% – 12.0% vs. normal rates of over 13%
  • Tenure Upto 18 years from NBFC’s and Upto 15 years from banks
  • Lowest EMI of Rs. 2199 per month per lakh
  • Processing fee discounts of Upto 75%, with offers available at 0.25% compared to cards rates of over 1%

Best part in 2015 is that there are no prepayments or foreclosure charges on floating rate loans sanctioned to individuals.

What Purpose can loan against property money be used for?

  • Growing your business
  • Renovation of your home
  • Children’s education and marriage
  • Medical treatments
  • Vacation and entertainment
  • Buying another property
  • Repaying higher cost personal loans and credit card loans

What are the key features of loan against property?

  • Loan available against any registered freehold commercial property or loan against personal property
  • Loan tenure Upto 15 years; can extend to 18 years on some cases
  • Easy and fast processing – typically 7-10 days
  • You can get Upto 75% of market value of residential property and Upto 55% of market value of commercial property
  • Low interest rates starting at 11.50% in offer period, else 13% plus

Compare the Loan against Property Interest Rates?

How to take the best loan against property at lowest interest rates, lowest EMI and lowest processing fee? Simply logon to MyLoanCare.in  and you can check out the latest offers or speak with a loan advisor. No charges.

Documents Required for Loan against Property :-

  • Residence and identity proof of the person who is taking the loan
  • Last 6 month salary slip for salaried people and business proof and certificate for businessmen
  • Last 6 months bank statement
  • Completely filled loan application form and a passport size photograph
  • Property title documents

MyLoanCare.in brings the loan against property and enables the loan borrowers to unlock the value of their property. You can mortgage any commercial, residential, or any other property to complete your financial requirements.

 

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Everything You Need to Know About Loan against Property

Loan against property is a type of loan which can be taken by giving a residential or commercial building as security. Banks require that the borrower should have clean title to the building and the same should have been constructed as per building norms.

Loan against property

As this is secured loan, interest rates are low when compared with unsecured loans like personal loans.

Need money for your child’s studies or to grow your business? Well, the money already exists in your house.  You just need to discover it.

In simple terms, loans can be categorized in two forms: secured and unsecured. Credit card and personal loan are examples of unsecured loans while housing loan, loan against property and car loan are secured loans.

When you should look at LAP?

For anybody who is looking for a loan for a medium term (say, a few years) and has either his home or any commercial property to offer as security, LAP is the lowest cost option available. For those looking for loans for a very short period, say a few days or a few months, gold loans offer an attractive option.

Benefits of LAP:

LAP has plenty of benefits; some of which are given below:

  1. You can get 50- 60 % of property’s market value as loan
  2. Interest rates significantly lower than personal loans, though slightly higher than home loans. Typical loan against property interest rates range from 11.5% to 16%.
  3. Fast processing – LAP applications can typically be processed within 7 to 10 days once all loan documents are in place
  4. Some pre-prepayment (typically 25 % to 90%) is allowed in a year without any charges. So, in case you have surplus money, you can prepay your loan and reduce your interest burden
  5. For individual borrowers, there is no penalty for even full prepayment or foreclosure. However, in case you borrow in the name of a business entity, prepayment charges of 2 – 5% typically apply
  6. In case you need some more money, and in case the existing loan amount is less than 40-50% of value of the property, top up loan is possible. This is a very helpful feature for many businessmen.

Disadvantages of LAP:

  1. Maximum LTV (loan to value) is capped at 60% for residential property and 50% for commercial property. This means that banks won’t give more than of the 60% of value of house property and 50% of value of commercial property as loan. Note that the value is typically taken as market value and not registry value or circle rate value.
  2. You need to processing charges of 0.25% to 2.0% of the loan amount when availing a LAP.