A loan against property (LAP) is exactly what the name implies — a
loan given or disbursed against the mortgage of property. The loan is
given as a certain percentage of the property’s market value, usually
around 40 per cent to 60 per cent.
Loan against property belongs to the secured loan category where the
borrower gives a guarantee by using his property as security.LAP is
pretty similar to personal loan; the only difference being you put a
property owned by you as collateral against the loan. This property
might be confiscated in case you default on the loan. As there is
collateral against the loan, banks feel more secure in lending and hence
the borrower gets some bargaining power as compared to personal loans
which is unsecured.
What purposes can I take a loan against property for?
Loan against Property can be taken for following purposes:
When to take a loan against property?
It’s easier to get a loan against property, then a host of other loans.
Also, Interest rates are far more attractive than other forms of loans,
like personal loans. Also, the property continues to be in the name of
the owner and the asset can be put to a more productive use.
Loans against property is yet to catch up in India, but it’s something that can certainly be considered.
This gives following advantages:
Important Features of LAP
Few features related to LAP which makes this option attractive:
Why you should opt for LAP?
There are three basic reasons which make this option worth consideration-
1. Lower Interest Rate
As it’s a secured loan; you get a bargain of 4 to 5% on the interest
Rate you pay as compared to personal loan. The Interest rate ranges from
11 to 14%. This lower interest rate gives a clear edge to it over
personal loan where you pay interest in the range of 16 to 20%.
2. Longer Tenure of Repayment
This feature further reduces your EMI burden as you can get LAP up to
10 to15 years. When your cash flow is not steady this feature makes the
option even more attractive.
3. Ideal Use of Property
case you own a property and not using it, LAP gives an opportunity of
optimum utilization. You do not lose the ownership and get Funds at
cheaper rates at your disposal.
A loan against property is one
of the best ways to raise money. The only disadvantage of such a loan is
that if the borrower is not able to pay the loan fully, the bank or the
financial institution can take possession of the mortgaged property.
Base your decision on your repaying capabilities.
HDFC has more than 3 decades of experience in offering Home Loans to its customers. HDFC Bank home loan designed their product to cater people coming from diverse status including the lower, middle and upper class. Home loan from this bank is the most appreciated product. The lender strives to help you to realize your owned home.
HDFC bank has planned their home loan with some unmatched features which make them the buyers first choice for home loan. Some of them are:
Widest range of approved projects
Attractive Home Loan Interest Rate
Wide range of Home Loan Products
Assure hassle-free processing
Loan from any office for purchase of home anywhere in India
Loan approval before property selection
Flexible repayment options
Secured document storage
The bank has a team of committed experts to proffer proposed borrowers with the best deal. HDFC home loan caters Salaried, Self-employed businessman & self employed professionals. The bank funds on both residential and commercial properties.
The bank performs an in house process for legal and technical verification of the property. The processing and administrative fees cover all these expenses. After the relevant verifications the financer funds up to 80% maximum of the cost of the property (Agreement value + Stamp duty + Registration charges) based on the repayment capacity of the customer. HDFC funds for purchase of fresh property (directly from builder) / resale or for construction of houses.
The bank has its own set of parameters to appraise a customer. An existing HDFC Home Loan customer can avail other loans (like Personal Loans, Car Loans etc) at lower interest rates.
The bank has planned a Flexible repayment proposal which gives the customer preferences like Step up Repayment Facility, Flexible Loan installments Plan, Tranche Based EMI, and Accelerated Repayment Scheme. The borrower may choose any scheme for paying his EMI; either he go for PDCs (Post Dated Cheques), ECS (Electronic Clearing Services) or Automated Repayment of Home loan EMI (through standing instruction).
The bank realizes your sentiment and hence offers good security of property documents for your complete peace of mind. HDFC Standard Life Insurance Company Ltd. offers an insurance plan; with home loan which is designed purposely to shield borrowers family from unforeseen mishaps like demise of applicant to ensure that it does not affect family’s interests and their valued home.
Loans usually mean ‘have access to cash’ from banks or other financial organizations. Generally recognized loans like protected and unprotected loans are among the various diverse types of loans. Protected loan are taken when a person have access to by way of assorted guaranteed securities even as unprotected loan do not need any finance of assets or possessions.
Unsecured loan is the option if individuals with assets are not prepared to advance it for taking a loan. There is a difference between a secured and unsecured loan and that is the rate of interest. If you are going to choose unsecured loan then your rate of interest will be higher compared to that of secured loan. Bad credit loan also charges high interest rates because they use your credit score as base.
The number of companies that offer loans has grown because of the growing requirement for loans. This method then creates a large amount of competition for the offers that can be created by the lenders. They compile various plans and have many recommendations with distinct interest rates. The final beneficiary ends up being the borrower.
The borrower can negotiate and bargain for the rate of interest that he is given and regarding the EMI or equated monthly installments also. They may select the suitable options that are provided for repayments and they can even make use of the loaned sum for an extensive period.
If you speak about an unsecured loan, it can always bear a bigger amount of risk for the bank or financial institution since they do not get any assets against the amount given. In case the borrower turns into a defaulter owing to some reason, then the bank or financial institution has literally no choice but to initiate legal action against the individual who has taken the loan.
To obtain unsecured loans without having to give a collateral is now much easier than before. The security of the loan amount was a primary concern for the banks and they turned down all unsecured loan requests. But now these banks have forgone certain formalities and have become more open to unsecured loans as a result of the competition they face from within the banking industry. The debt consolidation loan is another one that is available. You could clear off most of your debts by this loan which is secured by your assets.
Equated Monthly Installments (EMIs) in Home Loan refers to a preset amount to be paid by the borrower to the lender on a fixed calendar date of every month towards the repayment of the loan. The EMI depends upon your loan amount, interest rate and loan tenure. The advantage of an EMI for borrowers is that they know exactly how much money they will need to shell out every month and can plan the budget accordingly.
ICICI Bank a recognized Home Loan provider considers in providing all possible assistance to its customers. In order to give a convenient service to the potential ICICI Bank home loan customers the bank provides two very valuable tools that might prove to be useful. ICICI Bank Home Loan Calculators has made the task of eligibility computation and EMI calculation effortless for its customers. The borrower may use this online tool as a quick guide before availing Home Loan. This automated tool is very easy to use and provide the results immediately. You may know your possible loan amount with the help of ICICI Bank Home Loan Eligibility Calculator and your reasonable EMI with the help of ICICI Home Loan EMI Calculator. Gone are the days when borrower had to run from one lender to the other to compare the loan eligibility and others. It is very important for any housing loan borrower to have some idea about his eligibility and monthly EMI. These online tools proffer the advantage of planning your budget online from your home or office as per your convenience. ICICI Home Loan Calculator is a reliable tool. The system would ask for some very basic information to compute. It is very important for you to have some idea about the monthly EMI if you are looking to obtain a home loan. With the help of a home loan EMI calculator from ICICI Bank, you can make an estimate of the Monthly Equated Installment (EMI) that you will have to pay for a specific loan term. This calculator permits you to know whether you will be able to afford the EMI payments or not. To make calculation with loan EMI calculator, you are required to provide various details such as the total amount of loan, loan tenure in years, and interest rate of the loan.
Home Loan interest rate plays a vital role in evaluating a borrower’s eligibility. The eligibility of a borrower generally depends on the borrower’s repayment capacity. ICICI Home Loan Interest Rate has been planned in a way to cater a large segment. ICICI Bank home loan offers attractive rates and a number of benefits. The lender is one of the largest providers of home loans in India and has helped a large number of low and moderate income families to realize their dream homes.
Getting a car loan is an extremely easy process nowadays. There are plenty of banks and finance companies that are willing to give you a loan up to 2.5 to 4 times of your net annual income. There is no ceiling on the loan amount for new cars. So, here is how the step-by-step process for the car loans.
Step 1: Become eligible for the car loan.
To find the lowestcar loan interest rate, you need the dedicated research. With a few certain facts to keep in mind, there is a guarantee that your application for a car loan will be accepted in no time. To get loan ready, you need to meet the eligibility criteria of the most banks and finance companies.
The age of the borrower is between 21-65 years.
The borrower should have a job for at least 2 years. You should be able to hold a job atleast for a year with your current employer.
You should have a telephone, mobile or smart phone to be able to reach you.
You must earn minimum an income of Rs. 1, 80,000 P.A., which can include your and your co-applicants the income.
There are few banks that levy higher criteria for the car loan approval. You may need higher salary standards, better credit score, etc. But, if you apply with smart banking solutions like HDFC, above criteria can be sufficient.
Step 2: Gather down payment & finalize lender.
Since, car loan application and approval is easy, you need the down payment handy. So, how much down payment you need. It may seem that 15 to 20% is enough. But some organizations do offer loan for 100% of the amount too. So, look into that. It will help you finalize the lender.
Step3: Fine-tune the details.
The maximum repayment tenure is fixed to 7 years for the most banks. You will need to consider processing fee, service charges and taxes before you finalize the lender, EMI and tenure. Most lenders will have user friendly car loan EMI calculator on their websites. They are designed to help you compare the best interest rates, EMI, affordability of the car models you are considering and much more. Using a car loan EMI calculator, you can calculate the rate you can afford when you select the lender and EMI.
So make sure and do your homework on the various car loan interest rates using the car loan EMI calculator because it will help you select the most suitable one.