Need a Loan Against Property? Check Rs 15 lakh LAP EMI & interest rate

A loan against property is a secured loan given to someone who owns a property in his name.

 Whenever you have a requirement for funds, you can pledge your residential or commercial property to use it as collateral.

It helps you borrow money using your property as collateral and repay through EMIs.

 A major benefit of this loan is that you can hold on to your property and raise funds for any of your bigger financial requirements simultaneously.

It is easy to apply for and get this loan if your property is legal and meets all the terms and conditions of the lending institution.

You can keep your property documents ready along with your identity details to apply for the loan.

 One can either go to the nearest bank branch or apply online for this loan. Often banks give lucrative deals to their existing customers with a good track record or salary account.

However, you must compare terms and conditions, services, interest rates and additional charges applicable to different circumstances before applying for the loan.

Also, it makes sense to choose an institution that takes lesser time to process your loan, as if you need the money immediately, you cannot get stuck with a lender who delays the processing of your loan.

Before applying for a loan against property, you also need to remember your property value, loan requirement, EMI amount, interest rates, tenure and additional charges.

The interest rate and tenure are the two most important factors. If the tenure is longer, your interest will increase on the borrowed loan,

 but if you keep the tenure short, your EMI amount will go up. So you need to strike a balance and take a call considering your repayment capacity.

Often the tenure of this loan ranges between 12 and 240 months, but this may vary from institution to institution, according to Bankbazaar.

Click below to see more web stories.