Loan against property is a great way to avail a large sum of money in a short-duration for emergencies. This type of loan has increasingly become popular, especially amongst business-owners. Since it is a form of mortgage loan in India, it gets approved by lenders easily. PNB Housing Finance Ltd. offers LAP at a low rate of interest. However, there is some essential information you need to know before choosing a loan against property.
The Value of the Property: The loan cannot be more than the value of the property. But, you can easily avail from 70% to 90% of the property’s market value as a loan.
Income and Ability to Repay: Your loan will be primarily approved on your income or ability to repay. A suitable EMI tenure will be decided between you and the lender, up to 15 years.
Co-Applicant: If you cannot repay the loan by yourself, you can get a co-applicant to sign with you. The lender will run a background check to know if they can be approved as a co-applicant.
Fees Involved: Apart from the mortgage loan interest, there are various fees involved in applying for such a loan. For example, pre-closure charges, processing fee, etc.
Ownership: You should be the sole owner of the property. You cannot mortgage a property which has a co-owner without their consent.
Loan against property is best suited for people requiring a large amount of money. If it is a small loan you require, you can easily go for a personal loan. It is a risky stake, but it offers a large sum at low-interest rates.
