ADVERTISEMENT
Wednesday, March 22, 2023
  • Write For Us
Gurgut.com
Advertisement
ADVERTISEMENT
  • ✍️ Write For Us
  • 💼 Business
  • 👨‍🔧 Services
  • 💊 Health
  • 🏫 Education
  • ⚖️ Legal
  • 📢 Marketing
  • ⚙️ Technology
  • More Categories
    • 🚗 Automotive
    • Beauty
    • Clothes | Fashion
    • Constructions
    • Covid 19
    • Crypto
    • Entertainment | Games
    • Finance | Real Estate
    • Food | Restaurants
    • Gardening | Landscaping
    • Holiday | Travel
    • Houses Service | Improvement
    • Industrial
    • Life Style | Art
    • Packers and Movers
    • Photography | Media
    • Printing
    • Shopping
    • Sport | Outdoor Activities
    • Transport
    • Web Service | IT Application
No Result
View All Result
  • ✍️ Write For Us
  • 💼 Business
  • 👨‍🔧 Services
  • 💊 Health
  • 🏫 Education
  • ⚖️ Legal
  • 📢 Marketing
  • ⚙️ Technology
  • More Categories
    • 🚗 Automotive
    • Beauty
    • Clothes | Fashion
    • Constructions
    • Covid 19
    • Crypto
    • Entertainment | Games
    • Finance | Real Estate
    • Food | Restaurants
    • Gardening | Landscaping
    • Holiday | Travel
    • Houses Service | Improvement
    • Industrial
    • Life Style | Art
    • Packers and Movers
    • Photography | Media
    • Printing
    • Shopping
    • Sport | Outdoor Activities
    • Transport
    • Web Service | IT Application
No Result
View All Result
Gurgut.com
No Result
View All Result

Have A Look On Loan Against Property Features & Advantages!

February 4, 2020
in Finance | Real Estate
Reading Time: 5min read
0

The LAP, or Loan Against Property, is one of the oldest and most secure types of loan available in the market. Lenders quickly provide loan against the property after security verification. This article will help you understand the features and advantages of LAP.

What Is A Loan Against Property (Lap)?

A Loan against property (LAP) or mortgage loan is a secured loan given by credit institutions against any of the residential or commercial property possessed by the borrower or having any ownership of that particular property. A particular percentage of the market value of the property is given as a loan, as per the requirements. Generally, you can avail up to 60% of your property value as loan as per current market research. 

The credit institution keeps your property as collateral (pledge as security); thus, we can say that loan against property, is a secured loan. So, in case you are unable to repay, the credit institution or the lender reserves the right to auction your property to recover the amount. Hence before taking it must be sure that you are ready to repay the loan amount. 

Types of Property Against which Borrower can Availed for Loan:

  • commercial property.
  • Residential property.
  • Plot area.
  • House.

For Which Purpose You Can Avail Lap?

A loan against property can be availed for any of the personal reasons. Some of the most common reasons for which you can avail property loan are listed as follows:

  • Wedding purposes    
  • Business Expansion    
  • Higher education    
  • Funding a trip or vacation    
  • Medical emergency
  • Consolidate your Debts.
  • Purchasing new property
  • Balance transfer of LAP.

What are the benefits of a LAP?

  • Low-interest  rate: The rate of interest of property loan is lower as compared to a personal loan due to the presence of collateral. Generally, you can avail a loan against property in interest range of 12% to 15%*. While, in case of a personal loan, you would have to pay 15% TO 25% interest. Hence, it is claerf that mortgage loan is better than personal loan.
       
  • Long  tenure: Tenure duration of loan against property can go up to 15 years while a personal loan has a tenure of fewer than 7 years. So, you can pay the amount more conveniently.
       
  • Lower EMI: Tenure  and EMI have an inverse relation. Since longer tenure is available, you will be able to pay less monthly EMI. You can use loan against property EMI calculator to get an estimate of your monthly EMI. However, it is advisable to take a loan for shorter tenure if possible as it will have a low overall burden on you.
       
  • Easy  to avail: credit institutions are often willing to pay secured loans as it minimizes the chances of defaults. So, availing a loan against property is usually not difficult.
       
  • Low or no prepayment charges: It is good to know that many lenders do not take prepayment charges in case of loan against property. So, you can save a lot if you get the right amount of in-hand cash later.

How does the lender decide the loan amount?

Many factors like age, income, spouse’s income, the value of the property, rented place, condition of property, documentation and others are taken into consideration while determining the loan amount. Generally, lenders provide a loan amount of around 60% of the property value.

What type of properties can be mortgaged?

You can mortgage a piece of land or a self-occupied house. But, the property needs to be free from any mortgage or litigation. You can check your loan against property eligibility online.

Documents Required for Availing Loan Against Property:

Different financial institutions require different documents for approving the property loan. But some of the documents are mandatory for all financial institutions. Here is a list  of some important documents which are necessary for availing the mortgage loan.

  1. PAN card 
  2. ID proof
  3. Address proof
  4. Passport-size photographs
  5. Bank statements
  6. Property ownership papers

Conclusion:

Loan Against Property is often available by people in India to cover huge expenses when they need capital. It is a secured loan, but you can have plenty of time to recover the loan amount. But before applying for the property loan make sure to use a loan against property EMI calculator to have an approximate estimate of your EMIs. It helps the users to know the exact EMI amount he/she has to pay per month or per year according to his/her flexibility. It will help you reconsider if you are unable to pay that amount before taking the loan.

Tags: Loan Against PropertyProperty Loan
Previous Post

Tips For Writing A Tech Tutorial Effectively & Interestingly

Next Post

Mobile App Ideas That Will Sail You Right Into 2020

Related Posts

Business Loan For Startup
Finance | Real Estate

Business Loan For Startup

September 23, 2022
0
Finance | Real Estate

Why is a Gold Loan the Best Bet for Your Financial Requirements?

October 5, 2021
0
Finance | Real Estate

Why Investing in Real Estate Properties is a big profit?

October 5, 2021
0
Business

Which Card Is Better To Choose – Visa, American Express, Master Card?

October 5, 2021
0
Finance | Real Estate

Buy Ideal Farm Houses For Sale By Owner

April 4, 2021
0
Finance | Real Estate

Top 8 Types of Credit Card In India You Should To Know

February 6, 2021
0
Next Post

Mobile App Ideas That Will Sail You Right Into 2020

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

apple cider vinegar benefits book

No Result
View All Result

Categories

  • Automotive
  • Beauty
  • Business
  • Clothes | Fashion
  • Constructions
  • Covid 19
  • Crypto
  • Education
  • Entertainment | Games
  • Finance | Real Estate
  • Food | Restaurants
  • Health
  • Holiday | Travel
  • Houses Service | Improvement
  • Industrial
  • Legal
  • Life Style | Art
  • Marketing
  • Packers and Movers
  • Photography | Media
  • Printing
  • Services
  • Shopping
  • Sport | Outdoor Activities
  • Technology
  • Transport
  • Web Service | IT Application

Recent Posts

  • Starting a Business in the UK: A Comprehensive Guide
  • The Importance of Business Networking in the UK
  • Unleashing Your Potential: Joyful Education
  • UK Business Taxes: What You Need to Know
  • Legally Happy: Navigating the Bright Side of the Law

Archives

  • March 2023
  • January 2023
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • February 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • September 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019

Tags

apartment rentals Maryland apartments for rent Baltimore apartments for rent in Baltimore apartments for rent in Maryland apartments for rent Maryland apartments in Maryland for rent apartments rent Maryland apartments to rent in Baltimore apartments to rent in Maryland App application business Loan cars custom boxes custom printed boxes development digital marketing Digital Marketing services entertainment erectile dysfunction finance financial transaction food health holiday home home relocation house house for rent Baltimore Maryland house for rent Baltimore MD house for rent Maryland house for rent MD kitchen Loan Against Property Mobile App Development payday loans no bank statement personal loan Quickbooks Error real estate technology tour Travel usa wordpress yoga teacher certification
March 2023
MTWTFSS
 12345
6789101112
13141516171819
20212223242526
2728293031 
« Jan    
  • Write For Us
  • Privacy Policy
  • Sitemap

© www.gurgut.com

No Result
View All Result
  • ✍️ Write For Us
  • 💼 Business
  • 👨‍🔧 Services
  • 💊 Health
  • 🏫 Education
  • ⚖️ Legal
  • 📢 Marketing
  • ⚙️ Technology
  • More Categories
    • 🚗 Automotive
    • Beauty
    • Clothes | Fashion
    • Constructions
    • Covid 19
    • Crypto
    • Entertainment | Games
    • Finance | Real Estate
    • Food | Restaurants
    • Gardening | Landscaping
    • Holiday | Travel
    • Houses Service | Improvement
    • Industrial
    • Life Style | Art
    • Packers and Movers
    • Photography | Media
    • Printing
    • Shopping
    • Sport | Outdoor Activities
    • Transport
    • Web Service | IT Application

© www.gurgut.com