The demand for loans against property is on the rise as it enables borrowers to use their immovable properties as collateral and fetch considerable loan principal against them without bequeathing the property ownership. As lenders have no lending risk, they extend a competitive interest rate on the loan principal.
Moreover, loan against property by private financer has made the credit option even more feasible for borrowers to avail. As private financiers extend easy-to-meet eligibility norms, borrowers can easily qualify for the loan amount and meet any high-end financial requirement with ease.
Know the highlights of loans against property
Here are the remarkable highlights of loan against property that makes the credit choice popular.
- Substantial loan amount
LAP Loan allows borrowers to access high-value loan amounts, enabling them to fund high-end purchases without liquidating their savings. Lenders disburse 70% to 80% of property’s prevailing market value as loan amount. The higher the property value, the higher the loan principal.
For clarity on property valuation, borrowers must use a land area converter and measure the different land measuring units into a globally accepted measuring unit. A unified measurement of land will help borrowers decide on the loan principal.
Competitive interest rates
As lenders are conditional owners of borrowers’ property, their lending risk is safeguards. Hence, borrowers are likely to fetch lower interest rates on the loan amount. A lower interest rate reduces loan expenditure significantly and makes monthly instalments affordable.
Flexible loan tenor
In addition,Another remarkable feature of a loan against property is that borrowers are extends flexible loan tenors, helping them repay loan amount on time. While longer loan tenor translated reduced EMI burden, it increases cost of borrowing. In addition,On the other hand, shorter tenor results in higher EMIs but significantly reduces the cost of borrowing.
No-end use restriction
This is perhaps one of the notable highlights of loan against property. Borrowers have the freedom to use the sanctioned loan principal to meet varied financial requirements. They can use it to fund medical emergencies, child’s education, expand business, purchase property, consolidate high-cost debts etc.
Zero prepayment and foreclosure charges
Borrowers who have avail loan against property at a floating interest rate are not charged any prepayment and foreclosure, helping them maximise their savings. However, borrowers must ensure that the loan amount is not uses for business expansion.
In addition, borrowers must know other hidden charges on loan against property. Staying updated regarding the additional charges help borrowers skip unnecessary financial hassles and plan their budget accordingly.
Moreover, the rapid digitisation in financial sectors and the increased credit disbursement by the private financier have enabled borrowers to avail the credit option with utmost ease.
Easy application process
With private financiers extending loans against property, it has become convenient for borrowers to opt for credit option. Here are the steps to help them undergo the mortgage loan process without any hiccups.
- Visit preferred lender’s official website and select loan against property from the product page.
- Click on ‘Apply Online’ and get redirects to online application form.
- Provide personal, professional and property details to fill out the application form.
- Upload necessary documents and submit the form.
A representative will contact and take remaining application process ahead.
In addition,Borrowers can enjoy such lucrative features by following easy eligibility norms and keeping the necessary documents in order. Eligibility criteria are set to determine borrower repayment potential. Hence borrowers must meet them to access considerable loan principal.
In this context, borrowers must know the list of documents needed to apply for a loan against property.
On successful application, borrowers can also avail of the pre-approved offers extended by leading financial institutions on a wide range of financial products like loans against property, home loans etc. These offers expedite the loan application process, making it hassle-free and saving turnaround time. Intending borrowers can check their pre-approved offers by submitting their names and contact details.
In addition, LAP is the feasible financial choice for most individuals allowing them to make optimum usage of their property and use the fund for numerous purposes. In addition, the disbursement of loan against property by private financiers has expanded the convenience of availing of the credit option.