5 Things To Know Before Applying Loan Against Property India
Financial crisis can stuck any time of our lives; for a common man it is tough to have a huge amount ready to support such fiscal crunches. There are ways; individuals can arrange for cash crunches and loan against property India providers are one of the best options to resolve urgent financial needs.
Whether you are in need of immediate cash for higher education of kids, or there is a medical emergency or there is an upcoming wedding to take care of, loan against property India providers can be blessings in disguise. Rather than asking cash loan from friends or relatives which has higher chances of messing the relationships, banks or private loan against property India lenders can offer immediate financial rescue.
The Purpose Of Getting Loan Against Property
The banks Loan against property India providers are offering loan for various purposes such as:
- Funding medical emergencies/treatments
- Offers financial aid for wedding expenditure
- Expansion or further growth of business
- Getting loan for higher education (studying abroad)
Features Of Loan Against Property India
The loan can be used for personal or business purposes to suffice the financial needs.
- The processes the loan application as compared to other loans
- By submitting loan application online; it has become super easy to get the sanction within 24 hours
- There are no pre-closing penalties or fees, therefore; the loan taker doesn’t have to worry on additional charges levied when closing the loan.
- Getting loan against property can be a wise approach in growing and expanding businesses; to have the financial aid on time in a hassle free manner to smooth out the difficulties.
- When there is a huge amount cash requirement, mortgage loan providers India can sanction the large amount when compared with other loans
- The loan against property interest rates are comparatively low; it is perhaps a viable option when it comes to borrowing larger amount.
Who Can Apply For Mortgage Loan India?
Loan against property India providers have certain set of suggestions when it comes to mortgage loans.To make sure that; the loan application doesn’t face any rejection; try to abide by the below mentioned rules:
- He/she should have the property/asset in his/her name
- A good CIBIL score is a must
- He/she must be India citizen or, Indian origin
- Whether salaried or entrepreneur; should have reliable source of income
- Should have all the supporting documents in line
Before Applying Loan Against Property In India
1.Get Realistic When You Are Taking Loan
Understand that getting a loan against property means the assets/property will be locked up with the banks from the day the loan is disbursed. In case if the loan applicant is not able to pay off the loan, the assets/property can get seized and the loan amount is recovered.
The property/asset papers will be remain with them, till the full and final settlement is done. Perhaps; a reason behind to think twice before taking the final call.
2.Understand There Is No Tax Benefit
Well; this is the major thing to consider, as most of the people who are keen to take loan against property do not have the slightest idea of this clause. It is true; the applicant’s are not eligible for any tax benefit under this. LAP may seem similar to that of home loan but it is not.
It is important to know under which circumstances you are seeking loan against property. For e.g. if there is a need of sending the kid for a higher education, get an education loan but not this.
3.Longer Tenure Means More Interest
There is a relief to find that the days are not numbered to pay off the loan; but it also means the loan applicant will be paying more interest. Ever thought of the other way? LAP borrowers may find comfortable with the longer tenure offered, but in the long run they end up paying more interest which makes the loan costlier. Before shortlisting the bank/lender understand how much the loan is going to cost.
4. Browse More LAP Options
When shortlisting the bank or lender for loan against property, do not cut short to 2-3. There are literally end number of loan against property India providers attracting their customer with appealing rate of interests, flexible pay off terms and condition, zero processing fees and no charges for closing the loan early. No two banks/lenders will offers same rates hence; to get the best fit it is important to browse as many options as you can.
5. Not Forgetting To Read The Fine Prints
Most of the time people fail to understand the terms and conditions and put into jeopardize. Especially when dealing with loans and when there’s valuable assets and property at stake, it is important to read and understand between the lines.
There are several terms and vocabulary; which are hard to understand and have no idea what it could mean. For any confusion or queries do not hesitate to contact the customer care or get advice from an expert. It will surely be beneficial in making understand about the loopholes.
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