Features & Benefits Of Piramal Finance Loan Against Property
The biggest asset you can own is your home. You can utilise this asset to pay your debts with the aid of a loan against property.
If you want a loan, you can look for the features of the loan against the property. Make sure you use your property’s potential to satisfy your financial needs at a reasonable rate with a long payback period. Let’s learn more about mortgage loans in this blog.
What Is A Loan Against Property?
A real estate-backed loan is a great and simple way to raise money. As the name indicates, financial firms approve loans against the property by pledging the asset as security.
The lender will sell or hold an auction to repay the loan amount if the borrower does not pay back the loan within the specified time frame. The market value of the property is calculated in such loans.
Eligibility Criteria To Get A Loan Against Property
Here are the requirements to apply for a loan against property:
1] Age of Employed Professionals
- The minimum age should be 21 years
- The maximum age for government employees must be 70 years
Type of Employment
- Proprietorship concern
- Private limited companies
- Private sector companies
- Public sector
- Partnership firm
- Govt. institution
- NGO or Trust
Documents Required for Getting a LAP
- Income Tax Returns
- Address proof like electricity bills, credit card statements, passport, etc.
- KYC Documents
- Bank statements and salary slips
- Documentation of the property
- Identity proof like Voter ID, etc.
2] Age of Self-Employed Professionals
- The minimum age should be 23 years
- The maximum age should be 70 years
- Business owners, Proprietorship, and Directors of public or private companies.
- Self-Employed Professionals
- Documentation about the property offered as collateral
- Bank statements for the last 6 months.
- Proof of office address location.
- Proof of business profile
- Address Proof like electricity bill, passport, credit card statements, etc.
- Identity proof such as license, voter ID, passport, and ID card of the company.
- Last 2 Years ITR Audited Financials.
- Income tax return copy
Purpose Of Getting A Property Loan
Let’s learn the purpose of borrowing a loan against property:
- The loans are simple to obtain, making them useful for urgent financial needs.
- It can help fund a holiday or vacation.
- These loans can be utilised for capital investments, debt repayment, and other legitimate needs.
- The parent can use this loan to send their child overseas for higher education.
- The loan might be utilised to pay for your marriage.
- The loans can also be used to help with home repair or other projects.
Features Of Loan Against Property
Here are the features of a loan against property:
- One of the best features of a loan against property is its fast service. It allows you to get the best loan at the lowest mortgage loan interest rates.
- The mortgage plan helps you get a loan of up to Rs. 3 crores. This helps you fulfill your personal and commercial demands.
- There is higher eligibility and a larger loan amount. A thorough evaluation helps you receive the big loan amount.
- You may receive the best mortgage loan interest rates. You get flexible payback arrangements to manage your budget.
- You get bank loans against property for a broad range of assets and properties.
- You can manage your business efficiently with fast sanctions and simple procedures for getting a loan.
- The company will process your loan application immediately if you need funds.
Benefits Of Loan Against Property
Here are the benefits of getting a loan against property:
- The borrower retains possession of the property and does not have to return the entire loan to regain ownership.
- It is an effective debt-reduction method.
- You can receive tax rebates on loans against property.
- A loan can be received with a lower credit score than a personal loan.
- Lower mortgage loan interest rates than other personal bank loans.
- A larger loan amount is available.
- The loan results in a lower EMI option and a longer loan term.
- Ownership of the land is preserved both during and after loan repayment.
- In times of need, a person might use his property for personal and business purposes.
- You also get a loan against property income tax benefits.
- A longer repayment period
Points To Remember Before Getting A Loan Against Property
There are numerous aspects to consider before selecting a lender for your mortgage loan:
- If a bank offers you a better loan against the same market value of your property, you should take the loan.
- There may be numerous repayment methods. Look for the option with the longest repayment term.
- Compare mortgage loan interest rates from various institutions. Interest rates range from 10% to 14%. As a result, there is an opportunity to select a better loan.
- If you have a CIBIL score that exceeds 620, your loan is less likely to be funded. As a result, it will qualify you for a secured loan. If you have made on-time payments on past loans, your CIBIL score is likely to be high.
- The greater the loan-to-value ratio, the better the deal. The LTV ratio varies depending on the property.
- For a vacant or rented property: 60% loan-to-value ratio
- Self-occupied residential properties: 75% loan-to-value ratio
- Commercial real estate: 65% loan-to-value ratio
- Industrial property for business use: 60% loan-to-value ratio
Prepayment and late payment should be reduced. The high fees associated with these payment alternatives may make it impossible for the borrower to repay the loan. There are also other payment options for Equated Monthly Installments (EMIs), such as Post Dated Cheques (PDC) or Electronic Clearance Systems (ECS).
In a nutshell, a mortgage loan is a sum of money borrowed from a bank or a company to buy property. When you receive money, you begin making payments regularly until the loan is fully returned.
However, before participating in any lending plan, you should always carefully examine its terms and conditions. To learn more about the benefits and features of a loan against property visit Piramal Finance right away.
Also Read: Financial Planning with Personal Loan EMI Calculator
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