Loan Against Property Residential
Loan Against Property Residential - Overview
Loan Against Residential Property is secure loan where one mortgages his property to borrow a loan against his or her residential property. The reason to avail loan against property can be anything from a wedding in your family, to meet business requirements, to send your children for higher studies, medical exigency in your family, consolidation of debts, etc. Loan against residential property is a secure loan that does not require any guarantor or collateral owing to the fact that your property acts a guarantee. Since your property is kept as a guarantee, the risk taken by the bank to lend you loan against your residential property is low and therefore loan against residential property is disbursed quickly, without much hassle. If you are interested in availing loan against residential property here is what you must know about it:
Loan against residential property can be borrowed based on the evaluation of your residential property. The evaluation is done by the bank through an independent agency or through banks own evaluators who evaluates your property. The cost of the property is then determined through an evaluator. Maximum loan that one can borrow by availing loan against property is upto Rs. 30 Crores. The other factor that is considered while issuing the loan amount is the credit rating of the borrower which involves the entire credit history of the borrower which determines the borrowers reliability to pay back. The banks normally lend around 60% of the value of the residential as loan against residential property.
Rate of Interest:
The rate of interest at which loan against residential property can be borrowed, starts from 9.50% p.a. Since you are depositing your residential property as a security therefore, the interest rate is not really high compared to any other loan.
You can borrow a loan against your property for a loan tenure upto 180 months. Longer the duration of your loan lower is the EMI that you will have to pay every month and therefore, you can comfortably pay back the loan borrowed.
The processing fee that is charged by the bank to process loan against your residential property is 0.25% upto 2% of the loan borrowed.
Advance Part payment:
When you borrow loan against property it is at the discretion of the bank if it sanctions you the entire amount or deducts some money as an advance partpayment. The percentage of advance part payment decided also depends on the lending bank.
Fore-closure charges are the charges that are levied when the borrower wishes to close the loan account in the middle of the loan tenure. Some banks charge NIL to 2% as a fore-closure charge when the borrower wishes to close the loan at any point of time during the loan tenure.
The documentation charges that are charged by the banks vary from bank to bank. The banks would charge the documentation fee as applicable.
Advantages of applying for Loan Against Residential Property at Letzbank:
You can SEARCH.COMPARE.APPLY for Loan against Residential Property at Letzbank and get benefited from a waiver on service for all online applications.
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