A mortgage loan against property is a popular credit option amongst individuals, as it can be used to fund a variety of large-scale expenses. The cost of borrowing such advances are low as well, due to relatively low interest rates and nominal prepayment and foreclosure charges.
Nonetheless, several factors play a crucial role in determining the total amount of advances sanctioned under a property loan.
Things to know before applying for a loan against property can be listed below –
- Eligibility Criteria
The first step to understand the loan against property process is to check whether applicants satisfy the eligibility criteria. Salaried individuals should be between 33 and 58 years of age while self-employed individuals should be in the age bracket of 25 to 70 years. All applicants should have a stable source of income.
- Interest Rates
Borrowers can avail such credits at either fixed or floating interest rates, depending upon their risk appetite and understanding of the financial market. However, since advances against property tend to be of a substantial amount, it is advisable to opt for fixed rates to secure their finances against adverse situations.
- Loan to Value Ratio
Credit sanctioned on loan against property is a stipulated percentage of the value of the collateral. Such loan-to-value rate not only depends upon the underlying property value but also the credibility of applicants. Such ratios should be carefully analyzed to avail of the optimum loan amount from NBFCs.
Careful consideration of such pointers allows individuals to secure high-value credits through a mortgage loan at relatively low-interest rates.
Additional Read: Why Loan Against Property Used for?
Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health.
No comments:
Post a Comment