People prefer taking loan against property as it is not as highly priced as a housing loan and it is cheaper than personal loan. Since it is a type of a secured loan, banks will offer the loan without any hassle. The interest rate offered is lower than that of personal loan as it is secured. CRISIL is expecting the loan against property to grow at 22% annually for the next 4 years.
But before you take a loan against property it is important to know what you will be getting into. The following are the things you must know:
If the property is self-occupied, you get loan up to 65% of the residential property value and 50% if it is a commercial property. If the property is rented, you get loan up to 55% of the residential property value and 40% if it is a commercial property. If the property is vacant, you get loan up to 55% of the residential property value and 40% if it is a commercial property.
The loan amount is released at once and you will be liable to start paying the interest immediately. The approval process is long and the bank goes through each and every document of income and property. If you are in a hurry to get the loan, then you must opt for personal loan.
But before you take a loan against property it is important to know what you will be getting into. The following are the things you must know:
- Interest rates:
- Purpose of Loan against Property
If the property is self-occupied, you get loan up to 65% of the residential property value and 50% if it is a commercial property. If the property is rented, you get loan up to 55% of the residential property value and 40% if it is a commercial property. If the property is vacant, you get loan up to 55% of the residential property value and 40% if it is a commercial property.
- Tenure:
- Custody:
- No tax benefits:
The loan amount is released at once and you will be liable to start paying the interest immediately. The approval process is long and the bank goes through each and every document of income and property. If you are in a hurry to get the loan, then you must opt for personal loan.