Loan Against Property

LOAN AGAINST PROPERTY :

Loan is given to the individual on the basis of mortgage loan or residential property. The loan is given in the percentage of market value of the property. Usually the percentage of the value to the property is about 60% to 90%. The percentage of amount being given to the customer is based on the place, area and value.

WHY TO GET LOAN AGAINST PROPERTY IS NEEDED :

• When requirement of money for business.
• Money needed for personal use.
• Money needed to child’s marriage.
• For medical expenses fund being needed
  Consolidation of debt
• Loan against property is free to customers.
• This loan is provided for salaried and self-employed persons or individuals.

LOAN OPTIONS

Loan Against Property Eligibility Criteria :

The eligibility criteria for loan against property vary from one bank to other banks or one financial institution to other financial institutions.

For Salaried persons:

The person or customer can get loan for property should be from government worker or any other reputed company person.

The age requirement is from 24 years or 25 years to 65 years.

Professional persons:

The person who applied for the loan is being a doctor or engineer or architect or chartered accountant or any other profession.

The age limit for the profession is to be 65 years below.

Self-employed persons:

The person who is eligible to pay income tax regularly

The applicant should have to be in the same business for 3 years to 5 years.

Property eligibility:

The property should in the applicants name and should be legal.

It should be free from any legal problems.

REQUIRED DOCUMENTS FOR LOAN AGAINST PROPERTY :

1) Loan Application Form should be completed.
2) Proof needed for identification,

a. Driving license
b. Ration card
c. Passport
d. PAN card
e. Voter’s ID card
f. Employee ID
g. Bank passbook
3) Age Proof ID cards,
a. PAN card
b. Aadhar card
c. Birth certificate
d. 10th or 12th class mark sheet
e. Bank passbook
f. Passport
g. Driving license
4) Residential proof

a. Bank passbook (or) Bank account statement
b. Voter’s ID
c. Aadhar card
d. Ration card
e. Passport
f. Utility bill (telephone, electricity, water, gas) – less than 2 months old
g. LIC policy/ receipt
h. Letter from a recognized public authority verifying the customer’s residence address
5) Income Statement (Salaried and self-employment individual)

For salaried
a. Form 16
b. Certified letter from Employer
c. Pay slip (Last 2 months)
d. Increment or Promotion letter
e. IT returns (for 3 years)
Other than income proof, the individual have to enclose the investment proofs also.
For Self-employment individual
a. CA attested last 3yrs income tax returns.
b. CA attested balance sheet for 2yrs.
c. Company introduction in short.
d. Passport size photo.
e. Registration certificate of the company.
f. Certificate of deduction of provision of tax, photograph.
g. Investment proof
h. Certificate of practice
i. Tax payments in advance receipts.
6) Property Documents

INTEREST RATE FOR LOAN AGAINT PROPERTY:

The person who is ready to take loan against property can be by two types, they are :

1. Fixed Interest Rate
2. Adjustable Interest Rate

1) Fixed Interest Rate :

• The interest rate is being fixed for throughout the loan duration.
• The fixed rate is varies from lender to lender.

2) Adjustable Interest Rate :

• The interest rate is static but not fixed.
• The interest rate changes from changes in market conditions.
• This adjustable interest rate is being help to those who try to keep loans in short duration period.

LOAN AGAINST PROPERTY EMI CALCUALTOR :

EMI is being calculated through this formula for loan against property.

EMI = [P x R (1+R) N]/ [(1+R) N-1]
Where,

• P is the loan amount taken
• R is the applicable rate of interest
• N is the number of months the loan is availed

The EMI is being calculated through credithelpindia.com with our EMI tool. Things to be added in the tool is amount borrowed, interest rate and time period as in the table follows.

For Example :

Loan amount is about 8 lakhs.

Interest rate in percentage is 0.1 or 10% of rate of interest.

Tenure or period of loan availability in months is about 36 months.

The EMI have to pay by every month is to be 22,257 in Indian Rupees.

LIST OF BANKS THAT PROVIDE LOANS FOR PROPERTY :

• SBI
• HDFC Bank
• ICICI Bank
• LIC Housing Finance
• DHFL Housing Finance
• Axis Bank
• Kotak Bank
• Yes Bank
• Indiabulls Housing Finance
• PNB Housing Finance
• IDBI Bank
• Citi Bank
• Bank of Baroda
• Canara Bank
• IDFC Bank
• Dena Bank
• Syndicate Bank
• UCO Bank
• Karnataka Bank
• Allahabad Bank

THERE ARE TYPES OF CREDIT CARDS ARE BEING AVAILABLE :

They are;
1) Secured Credit Card
2) Unsecured Credit Card

SECURED CREDIT CARDS :

Secured credit card is a next type of credit card; it is being useful to the individual who is rejected or not applicable for the lender who gives loan amount to the individual. Secured credit card is not like unsecured credit card. It has security to be provided for the bank or the financial institution.

Security is given to get this secured credit card. The person who is not earning and new to hold a credit is not eligible to hold a unsecured credit card. Secured credit can be easily hold by new credit holders.

UNSECURED CREDIT CARDS :

The unsecured credit card will be available without any security for the individuals. This is based on the credit card score with the help of CIBIL score ranges which is to be in the good ranges. The unsecured credit cards are given to the individual who has a good income value.

The credit card scores are noticed and the score ranges should not decrease for this card. If the credit card balance is settled on or before the due date then CIBIL score ranges will be in increase rate. The credit card usage should be below 30% to gain the CIBIL score and the credit card should be used effectively again and again. There is another type of credit card which is explained below.

LOAN AGAINST PROPERTY :

Loan against property should be always by secured credit cards mostly.

LOAN AGAINST PROPERTY BANKS IN INDIA LIST WITH INTEREST RATE :