A person can take a loan against his residential or commercial property. These days, many financial institutions are indulging in providing loans against property and this is a type of collateral loan. Whether you are a salaried person or whether you are running your business it is possible to get this loan if you own a property.
Check the reasons why people prefer to take a loan against property:
- If you compare a loan against property with a personal loan then you shall find that this is a cheaper and better option because as compared to a personal loan or business loan this loan is offered at lower interest rates.
- Even after availing of this loan, one can continue to stay in the property against which the loan has been taken.
- A loan against property can be used for many different reasons like you can use it to start your business or you can use it to pay medical expenses or you can even pay for your child’s education by taking this loan.
- By taking a loan against property you can manage the cash crunch and your savings remain intact.
- Loan against property comes with low-cost EMI and they also have long repayment tenures which are in the range of 15 to 20 years.
Important things to remember if you want to take a loan against property:
Before you apply for the loan against property there are some important things that you have to keep in mind and these are as follows:
1. Valuation of the property is very important in loan against property:
- The value of the property depends on many factors like the age of the property, the locality in which the property is located, the size of the property, the amenities that are available in the property, the builder, etc.
- Before you apply for a loan against a property you must know the right value of the property so that you can get the correct loan amount.
- If the value of your property is high and if it is in a good locality then you can get the loan against the property with ease as the financial institution is taking a low risk by giving a loan against a property of high value.
2. Make sure that you check the eligibility criteria for the loan against property:
- The eligibility criteria for the loan against property are different for different financial institutions.
- Before you apply for a loan against property from a particular financial institution make sure that you check the details of the eligibility requirements.
- If you match the eligibility requirements of the financial institution then the chances of rejection of your loan against your property application are less.
3. Comparing the interest rates of different financial institutions is very important:
- The interest rate that is levied by the financial institution for the loan against property is very important. The interest is a major factor on which the affordability and how fast the applicant can repay the loan depends.
- Therefore before you apply for a loan against property make sure that you compare the interest rates of the different financial institutions.
- Along with the interest rate you also need to check the repayment tenure that the financial institution offers.
- Make sure that you check if the financial institution charges any additional fees because there is a possibility that the financial institution may offer low-interest rates but may be charging other fees to the applicants.
4. Get an idea about the amount that you need:
- You must have an idea about the loan amount that you need and for this, you have to make a list of things for which you require the money.
- From the list, you get an idea about the money that is needed to meet the expenses and after that, you need to evaluate your income and the expenses that you incur every month.
- This shall give you a proper idea about the money that you need and then accordingly you can apply for the loan against the property.
- It is always better to avoid taking an excessive amount as a loan when your actual requirement is less.
5. Get the details of the benefits and the services that are offered by the financial institution:
- Some financial institutions give the borrower the benefits of some value-added services.
- Before you apply for a loan against property you can check which financial institutions offer such value-added services and how they can enhance your loan-taking experience.
- Some financial institutions offer services like a pre-approved loan which makes it easier for the applicant to get the loan disbursal at the earliest.
To get different types of loans like loans against property choose Money View:
One of the most reputed financial institutions that offer different types of loans to people at competitive interest rates and flexible repayment tenure is Money View. If you are interested in applying for a loan from Money View then you have to first check the eligibility criteria online.
If you are eligible then you can apply for the loan online on the website of Money View and all that you have to do is fill out the online application form and submit the soft copies of the documents like photo id proof, address proof, and proof of income.
The loan is approved as soon as the applicant accepts the terms and conditions and the loan is disbursed in the next few hours.
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It is possible to get a loan against your residential or commercial property at competitive interest rates. But before you apply for the loan against your residential or commercial property you have to check the valuation of the property, the interest rate, eligibility factors, hidden charges, and value-added services offered by the financial institution.
If you want to get a personal loan at a competitive interest rate then you must connect with Money View. If you are eligible then you can apply for the loan from Money View on the website i.e. https://moneyview.in/.