Has an unforeseen circumstance hit you with an emergency cash requirement? Not sure if opting for a loan against flat is a good idea? Let's take a closer look and scrutinize if this is a feasible option!
A loan against residential plot is one of the favored means of fetching high financing from banks and NBFCs with long-term repayment options.
Loan against property contains three broad options:
The property from any of the above should be free from any encumbrance. Loan against flat comes under category one, i.e. residential property. This loan brings along a lot of benefits over and above other options available.
Benefits of Loan Against Property:
The sanctioned amount of loan is considerably high due to a market valuation of the immovable property. Higher the market value, the better is Loan to Value (LTV). A Loan Against Property amount is higher in value as compared to another collateral-free loan facility.
The loan amount can be used to clear a cluster of small debts in one go, helping the borrower to deal with only one credit. Since the amount disbursed is quite high, it can finance marriage expenses, fees for education abroad and the likes.
The borrower may not disclose the same to the lender since the end use is not restricted to any specific use like in case of a home loan or vehicle loan.
Loan against property for flat comes with a repayment schedule evenly spread for entire tenor making EMI payments affordable. This EMI value is all inclusive of principal amount and interest rate.
Borrowers can choose from the option of a fixed or floating rate while availing the loan. A Loan Against Property Interest Rates has a lower rate in comparison to other loan facilities. Fixed interest rate implies the same rate of interest throughout the tenor of the loan while the flexible interest rate would make each installment different as the rate of interest fluctuates.
Long-term loan against residential plot provides a borrower with the benefit with low EMI and helps them save along the loan cycle. The Loan Against Property Eligibility gives the best overview for what documents are needed and how much time a person needs to get oneself fully qualified for the procedure
Eligibility Criteria for a Loan Against Residential Plot :
An individual with age above 33 and below 58 years.
Employed in any private or public sector with a regular flow of income
Resident of India
2. For Self-Employed
Resident of India
Age range between 25 to 70 years
Cash books to be checked to ensure a steady flow of income
Loan Against Property Documents Required:
For salaried individual -
Salary slips for the last 3 months
Form 16 of the current period /IT returns
Information on all bank statements from updated passbook for the previous 3 months
PAN card /Aadhaar card
KYC documents of the application and co-applicant, if any
Documents of property to be mortgaged
Address proof
If any other loan is currently running, then a copy of the sanctioned facility letter.
For self-employed -
PAN card/Aadhaar card
Address proof
Documents of the property to be mortgaged
Current period /IT returns
Information of all bank statements fro updated passbook for the last 3 months
If any other loan is currently running, then a copy of the sanctioned facility letter.
Note: Copy of the documents to be submitted and original to be produced for verification purpose only.
A flat cannot be misunderstood only as a fixed asset which appreciates over time. Instead, it underlies a financial strength which empowers you to settle your worries by keeping it as security and pay back easily and flexible.
Additional Read: Loan Against Property Important Charges That You Need To Know
Take an idea of your estimated EMI with the EMI calculator and accordingly choose tenor of your loan. Opt for this very promising loan against residential plot from one of the trustworthy lending institutes to fulfill your dream.
Alisha Antil
Alisha Antil is your best financial helper. She has a vast experience in finance and loans and provide to you the expert advise in ensuring your property.