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Monday, January 14, 2019

Loan Against Property: How to Get Best Interest Rate Offers

4:14 AM 0
The loan against property (LAP) can help you cover all bigger expenses right from financing your children’s overseas education or wedding expenses, it can include all. However, you have to obtain it first. That said, like every other borrower, you must be expecting the same at low mortgage interest rates. Though it’s not that easy, following the below-shared tips can help you do that.

Your CIBIL Score: Even though CIBIL score has a very negligible role to play in case of a secured loan, it helps the lender determine the financial status of the applicant. Accordingly, a good credit score would mean the person has good control over his finances and vice versa.

A Good Repayment History: A good repayment history without any EMI defaults can also help you get a good interest rate deals on loan against property. Thus, if your CIBIL report has anything which can bring down your eligibility, do a settlement with the bank or NBFC associated with it and get it removed.

Mortgage a Property of Higher Value and Ask for Less: Even though loan against property is highly secured in nature owing to the availability of mortgage, pledging collateral worth higher and asking less as a loan against it might get you good deals. In short, keeping your loan to value ratio lower can get you better interest offers.

Legal Aspect related to your Property: Last but not least, your property (the one you’re mortgaging) should be legally sound i.e. should be legally yours and you should have complete authority to mortgage it. Also, it should either be a registered flat, residential land or a commercial property.

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Tuesday, January 8, 2019

Loan Against Property for Medical Expenses: A Brief Guide

4:54 AM 0
Medical emergencies are often unplanned and expensive. Thus, it is quite common for people to find it compelling while addressing the medical expenses out of their own pocket. This goes without saying for people belonging to the lower and the mid-income category. Talking about the coverage provided by medical insurance (if you have one), there are times when the cost is beyond the insured sum. Hence, availing a loan to address the medical expense becomes inevitable, and the only way out is to find the right one for the purpose.   
Secured Loan or Unsecured Loan: Which is the Better Way Out?  

Secured or unsecured, both are a suitable solution for the said purpose. However, one must compare both types of options available and choose the affordable one - based on the final amount one has to pay against the loan for medical expense. Based on that, a loan against a property for medical expense from a trusted lender can be a feasible alternative.

Perks of taking a Loan Against Property for Medical Expenses:-

> Loan at low-interest: First of all, the loan would be available at a very low-interest-rate compared to unsecured counterparts. Besides, you won’t require a good CIBIL score to qualify for the loan. That said, a good repayment history can get you good deals.

> Wide Repayment Tenor: The repayment tenor, since the loan is secured by collateral, would be longer.

> Tax Benefits: Since the loan would be used for addressing the expenses incurred through a medical emergency, the borrower would be entitled with tax benefits under section 80D.   

Bottom Line: The maximum loan amount varies as per the market value of the property pledged as collateral. Hence, plan accordingly.   

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Wednesday, January 2, 2019

How to Get a Loan Against Mutual Funds: Guide

11:39 PM 0
Since cash crunches have become a common phenomenon, having affordable funding solutions is an essential requisite. Having said that, these funding solutions need to be really affordable and accessible in order to be helpful.

For instance, a loan against mutual funds which lets people mortgage their mutual funds bonds and avail a loan against it can be a good option. However, in order to optimize the facility to a maximum, the applicant must be completely aware about all the ins and outs. Hence, on a similar note, below is a small guide on how to get a loan against property. 

What is a loan against mutual funds? 

A loan against mutual funds is a type of mortgage loan wherein the applicant gets to pledge their bonds and other securities as collateral to borrow a loan. The said facility can be availed from any bank or NBFC given the borrower has the required creditworthiness. The best part about this facility is, the borrower gets the desired financing while securing the maturity value of the investment at the same time.

How to apply for a loan against bonds? 

The application procedure is very simple. You can visit the nearest branch of the bank or NBFC you wish to proceed with for the loan and apply then and there. You can also use the online application feature provided by the lender to avail the loan. Just navigate to the online application feature, fill in the application form, attach all the necessary documents and then submit it. Once approved, the money will be disbursed directly into your bank account.

To know more about this facility, click here: A Handy Guide on How to Take a Loan Against Mutual Funds    

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Friday, December 28, 2018

Foreclosing Your Mortgage: Is It A Wise Decision?

1:09 AM 0
Foreclosing an existing loan can be a wise decision when it is a well thought one. Planning your finances is a crucial step before you take the plunge. You can get in touch with your lender’s Relationship Manager to understand the nuances of the process as this information will help you in taking the right decisions.

Know about Charges: As per the new ruling by RBI lenders are not supposed to charge for foreclosure. If your lender abides by the rule it will help to save. The lender will let you know the outstanding amount which needs to be settled by a due date by way of cheque or an online transfer.

Interest Savings: With foreclosure you save on the overall interest payment. Check the dues paid on the loan. If you find that you have repaid most of the interest on the loan in the first half of the tenure you can then utilize the money for foreclosure to invest somewhere else. Besides, there are no prepayment penalty charges which are levied on foreclosure of floating rate loans.So, the loan against property foreclosure calculator gives it all for your proper EMI calculations.

Negotiations: One of the lesser known benefit of foreclosure is that it gives you a chance to negotiate the existing loan terms with your lender. The lender may suggest lowering of your interest rate, waive off payments or some other related terms so the loan becomes easy-to-manage.

The thing with foreclosure of loan against property is that it will free you of the financial responsibility much earlier than you had initially planned. Returning the loan back to the bank might put a temporary constrain on your expenses but in the long run it will give you the mental and financial freedom you wish for. Besides, leaving a positive mark on your credit score.

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Thursday, December 27, 2018

Secured Option To Pay Off Your Medical Debt

6:02 AM 0
Paying off medical bills may sometimes not that easy as with other forms of debt. This kind of debt is mostly open to negotiations in terms of repayment. To avoid missing payments it is advisable to look for smart options to pay off the medical debt. These include -

The Payment Plan: Take the help of accountants at the hospital’s bill desk to help you break down your medical bills. They can divide the bills into equal monthly dues spread over a decided period by the accountant and you and opt for loan against property.

Offers and Discounts: In case where the bills are pending for long you can hire a medical bill advocate to negotiate them, on your behalf. These are professionals who have an in-depth understanding how medical bills are formulated and on what basis. They can help to spot errors, ask for MRP discounts, and even help to get some of the amount waived off.

Hardship Plan: Something like a payment a hardship plan breaks the total amount of the bills into easy-to-manage amount which can be settled on a monthly basis. This amount is decided based on your income and hence it offers a faster and efficient settlement of the pending bills without affecting your routine expenses.

Secured Finance: You can consider taking a loan against your fixed asset such as property. Being a secured loan it will be available at a lower interest rate and help to pay off the medical debt without much hassles.

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Obtaining a Loan Against Mutual Funds Explained

3:21 AM 0
There arise many instances in our lives wherein we require funds on a short notice but we do not have the requisite amount in our savings. The emergency is of such a pressing nature that we cannot wait for a bonus or salary hike and the assets cannot be liquidated on such a short notice. Despite this many individuals go ahead and sell their assets at a loss and lose ownership as well.

What such people do not know is that instead of selling off their high-value investments such as mutual funds, they can apply for a loan against it. This not only helps in retaining ownership but they also continue to earn interest for the period during which they are pledged as a collateral.

Availing Loan Against Mutual Funds

There are a number of financial institutions including NBFCs (Non-Banking Financial Companies) which offer loan against mutual funds at nominal rates. One of the biggest benefits provided by NBFCs is that of the sanctioned amount, you have the liberty to use as much money as you require and pay interest only for the part that is used. This greatly reduces the installment which is paid each month.

Loan Against Mutual Funds
Loan Against Mutual Funds

The process of application is very easy. Here’s how you can do it - 

  1. Apply for the loan online
  2. Fill out the application form with the basic details
  3. A confirmatory text will be sent along with an email regarding the status
  4. Next, a representative will visit you to complete the process and gather documents
  5. Once your documents have been verified, the funds are disbursed in a very short span of time. 

You can also track the disbursal of the loan from the online account which is provided to you.

To know more about this loan facility, click here: How to Avail a Loan Against Mutual Funds

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Wednesday, December 19, 2018

Loan Against Your Fixed Assets: Noteworthy Facts

2:19 AM 0
Did you know that your fixed asset such as property can be a lifesaver especially in times of financial need. It can be used to pay for expensive purchases, for medical treatment, higher education, wedding and much more.

Lenders let you avail loan against property for residential or commercial. Where, as a borrower you can obtain up to a maximum of 60% to 70% of the market value of the property as loan.

Here’s a low down of the various aspects of the loan against property -

The Application Process - It is very easy to obtain the loan online. You have to simply fill up an e-form and provide the necessary details to get started. The process does not take long, is hassle free and secure, as your personal information is never compromised. Moreover, if you prefer getting in touch with the lender’s representative you can do so too at your convenience and have the process done at any of your nearest branch.

The Paper Work - One of the most important aspect of the loan is the documentation which supports your loan application. Be it your KYC documents or the copy of the property to be mortgaged submitting the relevant documents, when needed, will increase the chances of your application getting accepted for the loan. If you fall short of any paperwork have them arranged in advance and keep original copies with you for record-keeping purposes.

Easy Repayment - Get the loan from reputed lenders such as NBFCs who offer facilities such as - the Flexi Hybrid and Balance Transfer to help you manage your finances well.

Additional Reads:

How to Qualify for Loan Against Property in 5 Steps?
Everything you Need to Know about Loan Against Property

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