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Friday, July 12, 2019

Can one Get a Loan Against Property Even with a Bad CIBIL Score?

4:17 AM 0

The Credit Information Report (CIR) is the record of your credit history across loan types and credit institutions. A credit score also is known as CIBIL score(numeric summary) is generated based on the evaluation of this report so that you can get a sense of your financial stand.

Maintaining a good credit score is important as it is the first screening criterion used by almost all banks and non-banking financial institutions when reviewing your loan application. In secured loans like property loan, chances of getting a loan approval even with a relatively low credit score is still a possibility. It determines your creditworthiness. The lenders equate a great CIBIL score with your capacity and discipline to repay the loan in times.

The expected CIBIL score for loan approval is 750 or above. However, some lenders might offer a loan even with a slight low credit score. The credit score is not the only parameter which is considered for loan approval. A low credit score can cost you higher interest rates. Many lenders look at employment history, earning potential, etc. in addition to the CIBIL scores.

CIBIL the score is more significant in case of unsecured loans, while in the case of secured loans like loan against property, it is slightly more relaxed. This is so because the lender has all the rights to liquidate your assets in case of default.

You can still avail a loan for low cibil score all you have to keep in mind is that it is compensated on the income segment. Your income stability is given the priority. A FOIR of at least 50% after including the EMI payments can make you an eligible candidate.

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Tuesday, July 2, 2019

Essential Aspects To Know About Loan Against Property

6:06 AM 0

In times of immediate cash requirement, many go for savings which is not a proper option. That way you are actually losing all your savings and exposing yourself to financial risks in the future. So the best solution is to get a secured loan from either a bank or an NBFC.
A secured loan against property known as the mortgage loan is not just the logical solution but an easy option for you to get money in very less time. So let’s talk about the few basic things about a loan against property.

Loan Against Property Eligibility Criteria
One has to know that the loan against property eligibility criteria depends according to the lender you choose. If you go for the public the bank you will have criteria set by the bank rule that you need to meet. Again, for NBFC you need to learn about the eligibility criteria and apply for the loan accordingly.

But the basic things remain the same such as:
  • Age criteria should be between 33 and 58 years
  • You have to be a citizen of India
  • You need to have a sound credit score
  • You must be either salaried or self-employed professional
  • You should have our residential property in the city where you apply for the loan.
Property Loan Feature
Loan against property is always a great way to take loan help from any the financial organization as that way you will enjoy a competitive interest rate and you will get quick approval. You can also negotiate the tenor as per your suitability and can pay back the loan even in 20 years. All you need to check is the loan against property eligibility criteria before you apply.
Learn well about the terms and conditions of the lender as you apply. 

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Friday, June 28, 2019

Why Loan Against Property Used for?

4:14 AM 0

Loan against property can take care of multiple needs subject to the fulfillment of the loan against property eligibility criteria. The loan against property eligibility criteria acts as a tool for the lender to confirm that you have a good track record with your credit card payments or paying off debts of your past loans. Some of the most common reasons why clients prefer to avail loan against property are:-
  1. Indian Weddings are always a grand affair- The rituals span over a few days and the guest list is unending. If you intend to get married at the peak season then the expenses can be really high. The venue itself can be expensive. To meet all the expenses incurred property loan is an easy financial solution. 
  2. When you require a certain amount of fund to start your own business- To keep the company running this type of loan is useful to get the fund so that you can comfortably bear the cost, as the tenures to pay off the loan are longer and have easy EMI rates.
  3. For higher education, you need to accumulate enough funds- Most parents at times cannot bear the huge tuition fees of college. This not only helps the parents to secure a future for their child but your child can later pay off your debts as well.
  4. When your home needs renovation expenses can spiral out of hand if not managed properly- Loan against property helps you to utilize your money wisely and helps you to carry out your renovation plans.  Reference Read: For What Loan Against Property are used for?

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What are the Risks Involved and How to Safeguard in Loan against Property?

3:38 AM 0

Every loan has certain risks and advantages. The best part about pledging your property is that you can avail a large sum of money while getting the best loan against property interest rates
Advantages of Loan
  • You can acquire loans for a significant, and increased tenure helps reduce the EMI that you pay.
  • Lenders both private and banks provide loans that can be paid through a period of 20 years or even higher in some cases.
  • When availing loans, make sure there are no existing liens on your property.
  • If the property is entirely in your name and is not co-owned by anyone, it is easier to get the document processed with minimum documentation and lesser processing period.
  • It is considered one of the safest options for both the lender and the borrower. 
  • Overcoming any Risks Involved.
  • The most common risk is that your property being auctioned if the loan is not repaid for a more extended period or multiple EMIs are missed.
  • Lending institutions always follow a strict process and can lose your property if you miss your EMIs regularly.
  • LAP interest rates can be low but don’t go for the maximum limit but rather get the loan that suits your requirement so that it is easier to repay.
Better management of your finance will help save yourself from potential risks. Keep your EMI at 30% of your total income and never touch or exceed 50%. Get your loan from reputed banks and private lending institutions to be safe while getting the best loan against property interest rates.

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Tuesday, June 18, 2019

Buy Your Dream Home In Nasik With Flexi Loans

9:44 PM 0
Nasik is one of the most important commercial cities in India. As 22 of the 46 wineries of India are located in this city itself, Nashik is also called as the “Wine Capital” of the country. It is one of the important holy towns of India where the Kumbh Mela is organized, and also lies on the Delhi Mumbai Industrial Corridor project, which is $90 billion commercial projects. There are prominent industrial areas here, and the spiritual value of the place also makes it one of the most happening and desired destinations to own properties.

If you want to buy a new, modern, or bigger home for yourself and have a property in Nashik, it is easy for you to get a loan against property in Nasik and buy your dream property. Financial Institutions including leading financial institutions like Bajaj Finserv are offering this secured loan where your property as collateral and you can get a loan of a higher amount.
The best of lenders have for you loans up to 3.5 crores if you meet the following conditions:

●You are self-employed or salaried and have a regular income source.
●Your age is in between 25 to 70 years.
●You are an Indian citizen who owns property in a city, which is deemed appropriate by the lending institution.

The best of companies can offer you a loan against property in Nasik you own in as less as 72 hours. The best institutions also offer the Flexi-loan facility. Under this facility, you only have to pay the interest in your Equated Monthly Instalment (EMI) only. The rest of the amount will be adjusted later on.

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Thursday, June 13, 2019

Points to Consider While Facilitating your Business Start-up with a Loan Against Property

1:05 AM 0
Owing to the number of government schemes for start-ups, this is the most favorable phase to begin your business start-up. But even after utilizing the government schemes you might still have to invest more in your business. The best source of finance, in this case, is a self-employed loan

To get the best deal, here are the factors you need to keep in mind before availing the loan.

1. Compare the interest rates- Compare the interest rates offered by all the lenders. Lower interest rates lead to lower interest payment. 

2. Look for flexible tenure- If you are looking for lower EMIs, then you need to choose a longer tenure. So choose a lender who offers flexible repayment tenure.

3. Check the eligibility criteria and keep the documents ready- Go to the shortlisted lender’s website and check the eligibility criteria along with the documents needed to avail the loan. If you meet the loan against property eligibility criteria, then keep the documents ready for quick processing. 

4. Access the fee structure- Understand each clause and check the fee structure carefully before applying for the loan. Avoid lenders who have excessive hidden charges. 

5. Make a budget- Check the financial requirements of your business and take a loan which doesn’t exceed that. Else you will have a bigger liability to deal with. 

6. Choose a good lender- The most important point is to choose a reputable lender who offers loan against property for self-employed. Choose a lender who offers low-interest rates, flexible tenure, easy-to-meet eligibility criteria, quick application approval, fast disbursal, and requires minimal documentation; such as Bajaj Finserv. 

Keep all these points in mind before applying for a loan against property for your business start-up. 

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Monday, June 10, 2019

What are the Tax Benefits of Loan Against Property?

12:00 AM 0
Loan against property is a loan offered against a property that is already under your possession. The loan is a secured loan where the property of the borrower is taken as the collateral. LAP can be taken for business use as well as for personal requirements. The value of your property decides the amount of potential loan you can get approved. The borrower gets the flexible loan against property tenure which ranges from 3-20 years if the borrower is salaried and 3-18 years if the borrower is self-employed.
Loan against property tax benefits:
As per section 24 (b) and 80C, there is no tax exemption if the borrower has mortgaged a home to get the loan against property. Loan against a property makes the borrower eligible to claim the tax benefits only. Here are some offered loan against property tax benefits one can achieve:-
  1. If the borrower uses the loan amount for business purposes then he can claim the processing and document charges and interest paid as per section 37
    (1). Business purposes could include buying more machinery, investing in training, and more.
  2. If an applicant uses the loan against property for purchasing any property then he is eligible for the tax deductions and the maximum deduction an applicant can claim is 2 lakh, as per the section 24 (b) of the income tax act.

However, if the borrower uses the loan amount for personal expenses such as children’s education, wedding expenses, travel, etc. then she/he is not eligible for any tax exemptions.

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