Loan against Property: A Helping Hand for Monetary Requirements

Loan against property is the most common all purpose loan that solves all your financial urgent basis requirements such as education, marriage, dream vacation, home renovation, debt consolidation, business expansion, etc. However, you have another option of personal loans that you can also avail for your urgent requirements. But, due to the high rates of Interest with the short repayment term, most of the people don’t opt for this. If you are an owner of a house, but don’t have money for any of your financial requirement, then you can take a loan against your property. It becomes cheaper than opting for personal loan.

The tenure for loans against property is normally ten years. You can use the loan amount for any purpose during this period. But, in the case of personal loans, you have to specify for what purpose the amount will be used for. Although, you can avail these loans for any type of property, whether it is commercial or residential, but most of the banks give these loans only against residential ownership property. There is a limit of taking this type of loan from banks, which most commonly ranges form 10 lakhs to 3 crores. There is also an age limit for applying loan against property; if your age is between 21 to 60, then you can avail it.

Apart form the age limit requirements, you can be asked for some documents at that time, when you go to apply for loan against property:

• Identity proof
• Resident address proof
• Age proof
• 3 months bank statement and IT returns for salaried applicants.
• Last 2 year certified income computation for self employed applicants. 

If you are applying for loans against property, you must fulfill the above document requirements. The banks offer you loan against property on two types of rates and these are fixed rates of interest & floating rates of interest.

As we know, with every passing day the economy of India is developing and getting more powerful, therefore, people are getting more finance literate. Here, loan against property give them option to fulfill their financial requirements and they don’t need to think twice while going for this.