Loan Against Property : If needed, you can take a loan by mortgaging your house with the bank. It is called Mortgage Loan or Loan Against Property.
Many times, we think of taking a loan when there is a sudden need for money. There are many types of loans available in the market, such as personal loans, gold loans, wedding loans, etc. If you live in your house and you need money for some work, then you can take a loan by mortgaging that house with the bank. It is called a loan against property.
What happens if the loan is not repaid?
A loan Against Property is generally provided by banks or financial institutions. These are given to you instead of residential, commercial property, or land. It is also called a secured loan. Because banks secure your property as a guarantee. That is, if you are unable to repay the loan, then the bank gives you 3 months to pay the EMI, and even in these 3 months you do not pay the pending EMI, then the bank can take over your property.
By selling it one can recover his loan deuce. Note here that the ownership of the property remains with you. That is, if you cannot repay the loan, then you should sell the property instead of the bank and repay the loan of the bank.
Features of Mortgage Loan
- In a mortgage loan, you can take a loan up to 60% of the value of the property. The loan amount goes up to 70-80% in some cases.
- Loans ranging from Rs 5 lakh to Rs 10 crore can be availed for a maximum period of 15 to 20 years.
- The repayment period of the mortgage loan is decided by the Housing Finance Companies.
- Just like you do down for a home loan, the down payment amount in a mortgage loan can be as high as 10-20%.
- If you want, you can repay the mortgage loan ahead of time.
- The bank may also ask you to take insurance of your mortgaged property.
Home loan eligibility
- If your income and occupation are stable, then you can easily get a loan.
- The minimum age limit is 23 to 25 years and the maximum loan repayment age is limited to 65 to 70 years
- Your financial status, credit score, and income are also examined to determine your eligibility
- If you are relative to your assets even if the liability is high, there may be a problem in getting the loan.
Benefits of taking a loan against property
- You can use your property to avail loan without transferring your ownership
- Interest ranges from 1.5% to 2% higher than home loans. If you are getting a home loan at 7% then a mortgage loan will be available at 8.5% to 9%.
- The time limit for paying it is very long, so you get a lot of time to pay it.
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