Know what is a loan against property and its checklist

Out of various financial products, a loan against property is a secured form of credit and a popular mortgage loan option among borrowers. To avail funds, borrowers need to pledge their residential or commercial property. This loan offers high loan value compared to other loan products and can be utilised to meet various personal and professional financial requirements.

To have an in-depth understanding of what is a loan against property, individuals need to know certain pointers before availing this loan.

Necessary checklist for loan against property

As an asset-backed credit instrument, a loan against property features a longer tenor and lower interest rates. Following are the essential pointers that will help borrowers know more about what is loan against property and ensure hassle-free application.

• Eligibility criteria

Being an asset-backed credit, financial lenders do not impose strict eligibility criteria for availing the loan. Following are the loan against property eligibility parameters for both salaried and self-employed individuals:

Salaried-

• Age: 28-58 years

• Must be a resident of India

• An applicant should be a salaried employee in a reputed private or public organisation

Self-employed-

• Age: 25-70 years

• Must have a steady income from the business

• Must be a resident of India

Borrowers can also take help from loan against property EMI calculator to determine the amount they can avail and plan their repayment accordingly.

Apart from meeting eligibility criteria, borrowers need to produce certain documents required for loan against property to eliminate loan rejection.

• Interest rate and processing fees

Opting for loan against property from reputed housing finance companies will allow borrowers to avail competitive interest rates. Although interest rates vary from one lender to another, borrowers need to compare financial lenders online and know the associated fees and charges levied by lenders to avoid financial burden in the long run.

Alternatively, borrowers can also use a loan against property interest rate calculator to determine how much one can pay as an interest amount.

• Application process

• Borrowers need to visit the official website of the lender and fill an application form

• After filling in essential personal details, borrowers need income and other financial details

• Finally, after submitting the form, a lender’s representative will connect the applicant for further procedures.

Now that you know what is a loan against property, borrowers can easily apply for the same and meet their necessary financial requirements following the above checklist.