Property / Home Loan Overview
Loan against Property is one of the variants of the Personal loans and are secured loans offered by banks and financial institutions using one or more properties owned by you as collateral. Loan against Property is also known as mortgage loan. One can avail these mortgage loans for commercial property or residential property collateral. The property is mortgaged and a fixed percentage of the prevailing market value of the property (normally between 60-70% of the value of the property) is given to the burrower as a loan. Though such a property is mortgaged with the lender, you are still allowed to continue using it for residential or commercial purposes.
These loans are a better option as compared to a personal loan due to the comparatively lower rate of interest charged by the lender. Additionally, unlike gold loans, where the gold ornaments are deposited with the bank and you do not get them back till the loan is paid in full, you can continue using the property used as collateral while you are repaying the loan.
Loans against property or Mortgage Loan area highly preferred form of loans in India, and have much more easily available than ever with the surge in banks and NBFCs providing these loans. Along with being cost-effective, these loans are reasonably convenient to avail and repay due to the relatively low Loans against Property interest rate
You can avail Mortgage Loan for following Purposes:
- Expanding your business
- Getting your child married
- Funding medical treatments
- Sending your child for higher studies abroad
- Funding your dream vacation
Features of Loan against Property (Mortgage Loan)
- In case of a property loan, financial institutions offer higher loan amount available for longer tenure and at attractive rates as compared to other loan plans.
- Quick and hassle free process of Loan against property with speedy approvals
- Residential and commercial properties are accepted as collateral to get loans against property.
- Mortgage Loans are an excellent debt consolidation tool.