Are you in need of immediate funds? A loan against property can help you. It will give you money by keeping your property as collateral.
You can get a mortgage loan from numerous banks and financial institutions in India.
However, check the property mortgage loan interest rate before applying.
Comparing the rates of different lenders might help you get a better deal. And a lower interest rate will also mean affordable EMIs.
Well, if you are taking a loan against property for the first time, you should also know certain other things.
It Is A Secured Loan
Unlike personal loans, these are not unsecured loans. So, the rate of interest will also be lower/. Personal loans can have very high-interest rates. So, mortgage loans are more pocket-friendly.
You Can Borrow A Higher Amount
Most lenders allow you to borrow around 60 percent of the value of the property. So, if the market value of your property is 50 lakhs, you can get a loan of up to Rs 30 lakhs or more.
It Offers A Flexible Repayment Schedule
You do not have to hurry to repay your loan. You can take up to 15 years to repay the loan. That ensures your EMI amount stays small. So, a mortgage loan will not put any extra pressure on your finances.
Well, you also get the option of prepayment. So, if you can manage to get the funds, ggo ahead and repay your loan earlier. That will save a lot of interest payments.
Everyone Can Get A Loan
Mortgage loans are not only for salaried individuals. Freelancers and businessmen can easily borrow money to expand their business. It is a much better option for them since there is no need for collateral.
Minimum Documents and Paperwork
Well, let us be honest here. No one loves all that paperwork. You can take a mortgage loan with minimum documents. Here are certain things you need.
- Your identity proofs.
- Proof of your address
- Don’t miss your income proof
- The papers of the property against which you are taking the loan
Easy Processing and Disbursal
After processing your documents, the lender might conduct a field visit to your property. When they are satisfied about your repayment capacity, your loan will get disbursed within a couple of days.
Other Things to Consider While Taking A Loan Against Property
- Apart from home loan against property interest rates, you should also check the extra charges. Your lender also charges you for the stamp duty and registration. These might add up to the total cost.
- Always maintain a decent credit score. That will give you greater bargaining power. You might also be able to get a lower interest rate.
- Never borrow more than you require. Remember that you have to repay the loan too.
The Bottom Line
Whether you want to renovate your house or expand your business, a mortgage loan will always be your saviour. PNB Housing offers loans against property at affordable rates. Moreover, you also get hassle-free disbursement.