LoanBoss Blog

Why loan against property is a good option

20 Apr, 2009 By:Unknown in Loan Against Property,

If you need money for any specific need like marriage, business expansion, foreign education then a good way to raise money is to get a loan against your property. The only condition for that is that you need to own a valuable asset in the form of a self-occupied house or a commercial property. It is a secured multi-purpose loan with longer tenure and lesser rate of interest than a personal loan.

You can take a loan against property for any reason like getting your son or daughter married, expanding your business, taking a foreign vacation or sending your children to overseas for study.

The criterion for applying for a loan against property is that it should be a freehold and self-owned property, having a clear and marketable title. The loan is given as a certain percentage of the property's market value (around 40-60 per cent). The value of your property will be determined by the bank offering you the loan. Anyone can get a loan against property given the person is a minimum age of 21 years, employed or self-employed with a regular income and is owner of a property.

The exact amount of loan against property given to you depends on factors including your income, repayment capacity and your past credit history. It also depends on the number of dependents, assets, liabilities, stability/ continuity of your employment/ business and the co-applicant's income.

It is advisable to do proper research before going for a loan against property. Ask the people who have opted for it in the past for their views on what bank offers the best loan deal. Have a proper look at the terms and conditions of of all the banks and try to read the fine print.

It is also important to look at the length of the repayment term. Choosing a lengthy repayment term will mean each monthly repayment is lower and this might well look attractive when making your application. However, the longer you take to repay the loan the more interest you'll have to pay in total. It's not unusual to have to repay double the amount you've borrowed once the loan term gets into the region of decades rather than a few years.

Comment:(20)
on 11 Nov, 2016

I need some money for emergernancy my num 7795526191

on 11 Nov, 2016

I need some money for emergency

on 23 Aug, 2016

property lone can you please help me
please call me 7049869408

on 07 Aug, 2016

I need 5 lack rs for purchase plot. In khargone.

7566865060

on 14 Jul, 2016

HOW Can i get bank loan for bike or two wheeler contact me in sbh

on 30 Jun, 2016

1 need 1 to 3 crores. Loan for poultry business if any one can help me call me....88.60.91.7100.thanx
Urgent

on 18 Dec, 2015

Hey Ryan,Absolutely as a matter of fact I apelpid for a personal loan one day and Auto loan two days later and were approved on both with Navy Federal Credit Union. I also have a credit card with them and my chose them as my lender on my student loan accounts as well. I was told that it does not matter how many loans you have with them just as long as your credit and income can back the requirements of the credit unions lending criteria which is there debt to income ratio allowance. FYI also note when completing the application for the auto loan just how well you have paid the personal loan use it as a reference so to speak.

on 16 Aug, 2015

My Mother need 5 lack. against property call me 9568154468.for you information my Mother is a house wife but my younger brother working in abroad so my get +/- 6 lack rupees each year in her account. could she get a loan if possible then call me please

on 11 Aug, 2015

please help me at any interest. thanking you. contact me at ph.no.9985054641.It's an emergency

on 11 Aug, 2015

Respected sir/madam, I need '5lakh 'rupees loan for my study of bachelor's degree abroad.I am ready to pay interest at any cost. but we dont have any property. please help me!

on 29 Jul, 2015

I need just 2 lack. My property against.pls call me 8670145005.

on 29 Jul, 2015

I need just 2 lack. My property against.pls call me 8670145005.

on 16 Feb, 2015

hi

i want to apply for an education loan. if i consider the loan against property, is there any chance i might be able to get the loan on my Agriculture land. Because my land is Non-Commercial.

i just wanted to know, whether i can apply for Education load against my agriculture land or not.

on 04 Oct, 2014

I WANT LOAN FOR BUSINESS

on 07 Feb, 2014

a really nice blog. Even i was looking out for a loan against property in Pune, and got it from SBI Bank. I preferred private finance companies to do it for me Deals of Loan

on 14 Nov, 2013

well i need to start a new business so need a property loan

on 24 Oct, 2013

Hi,

I want loan to construct rooms in commercial property can you please help me.


Thanks and regards,

iqbal

cell: 8341107865

cell:8897758454

on 12 Nov, 2012

I recently quit my job as I am getting married. Are there any banks which provide loan against property,for this requirement? My father is still employed and just turned 60. Now that I am without a job, would they give me a loan? I have defaulted on a previous loan and hence is on CIBIL.

on 11 Jul, 2012

I need some money

on 03 Jul, 2012

personal loan

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