Compare the Loan Against Property Rate of Interest in India
A loan against property is also known as a secured loan and it is availed by hypothecating your property with the lender. The lender offers funds against the property and the loan amount is based on the market value of the property. Hence, if you own an asset, you can apply for the loan and enjoy low loan against property rate of interest. The risk associated with the loan is low and you get to enjoy a high amount. It helps to know the value of the property before you proceed with the application. This will help ensure that you get the maximum value on your asset. You can use a commercial or residential property for the loan.
A secured loan is an ideal form of borrowing as it has a low rate of interest and flexible terms of repayment. You can use a property that is idle, in use, or leased out. If there are co-owners of the property, they will become co-applicants of the loan. There is a simple and hassle free application procedure for the loan. You need to fill the online application form and submit the necessary documents. You will have to provide the documents of your property and they will be hypothecated with the lender. The lender will hire a market valuer to estimate the market value of your property and the loan amount will be based on the same. If you have a strong credit score, you will enjoy low interest and favourable loan terms.
With a secured loan, you need to be alert with regard to the repayment. If you default in making the repayment, it could cost you the property. Since the property is hypothecated with the lender, they have the right to auction it to recover the outstanding dues. If you default in the EMI payment, your property could be gone forever. Hence, understand the cash flow situation of the business and then proceed with the application. Understand the terms and conditions of the loan thoroughly before you sign on the dotted line.
You must use the EMI calculator to get an insight into the EMI payable on the loan. The calculator is available online for free. Just provide the loan amount and tenure to get a quick estimate. If you think that the EMI amount is too high for you, adjust the tenure and ask the customer executives to help you with the same. Different lenders have varying loan against property rate of interest and it is best to compare the same online before making a decision. Low interest rate means low EMI and low monthly outflows. Choose a lender that offers the best terms and has no prepayment penalty. Thus, you will be able to repay the loan in time without incurring any penalty. Regular payment will also build a strong credit score. Once the entire loan amount has been repaid, the lender will transfer the property to you.
Also know- Rules To Follow While Taking A Loan Against Property
