{"id":406,"date":"2020-09-06T11:07:31","date_gmt":"2020-09-06T11:07:31","guid":{"rendered":"https:\/\/www.loanfasttrack.com\/blog\/?p=406"},"modified":"2020-09-06T11:07:31","modified_gmt":"2020-09-06T11:07:31","slug":"loan-against-property-at-lowest-interest-rate-with-loanfasttrack","status":"publish","type":"post","link":"https:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/loan-against-property-at-lowest-interest-rate-with-loanfasttrack\/","title":{"rendered":"Loan Against Property At Lowest Interest Rate With Loanfasttrack"},"content":{"rendered":"\n
\"Loan<\/figure>\n\n\n\n

(Remember Janakidevi<\/a>, who took our services to\nmeet her home loan balance transfer and top-up requirement? One of our esteemed\ncustomers, satisfied with our prompt services once again approached us at\nLoanfasttrack, this time for her loan against property requirement popularly\nreferred as mortgage loan in India.<\/p>\n\n\n\n

This\ntime also all her queries, doubts and questions relating to loan against\nproperty interest rates, processing time, tenure, loan against property\neligibility, additional top-up, loan against property calculator, required\ndocuments for loan against property, etc. were cleared by our representatives\nat Loanfasttrack.)  <\/p>\n\n\n\n

Janakidevi\u2019s\nconversations with our representatives was as follows:<\/p>\n\n\n\n

Questionnaire On Loan Against\nProperty<\/strong><\/p>\n\n\n\n

Q. What is loan against property? <\/strong><\/p>\n\n\n\n

Ans:- <\/strong>It is a type of secured loans against\nyour property taken to fulfill your professional and personal needs. People\nmisinterpret it with home loan, but in banking language loan against property\nmeans mortgage loans.<\/p>\n\n\n\n

Q. Where can I use the loan funds\nfor?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>Loan against property end use should\nbe specific. The loan amount cannot be used for trading and speculative\npurposes, investments in stocks and mutual, money lending business, investing\nin illegal plots or property, for purchasing a chawl property, etc. However the\nloan funds can be used for home repairs and renovations, business expansions, children education<\/a> or marriage, medical\nemergencies, etc. Moreover you can also use funds availed from loan against\nproperty to buy another property.<\/p>\n\n\n\n

Q. How much loan can I get against my\nproperty?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>The maximum loan amount on your\nproperty is subject to the market value of your property. As per the LTV (loan\nto value) norms of the banks maximum 60%-70% of the market value of the\nresidential and commercial property and 50%-55% of industrial property will be\nyour loan eligibility against property. <\/p>\n\n\n\n

Q. How is loan against property\neligibility calculated?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>Your eligibility for loan against\nproperty is determined as follows:<\/p>\n\n\n\n

(Lower\nof 1 & 2) <\/p>\n\n\n\n

1)\nIncome Eligibility (40%-60% of the monthly net income or net profit of salaried\nand self-employed respectively).<\/p>\n\n\n\n

2)\nLTV Calculation (50% – 70% on the market value of the property depending upon\nthe type of the property).<\/p>\n\n\n\n

Q. What do you mean by loan against\nproperty eligibility criteria?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>The bank\u2019s eligibility criteria\u2019s\nsuch as your age, tenure, loan amount, profile, employment details, income\nflow, property details, etc. are the criteria that makes you eligible or\nnon-eligible for the loan amount. Say for instance, a borrower\u2019s age of 70\nyears makes him non-eligible for the loan or a borrower employed with an\nindustry tenure following under the bank\u2019s negative list of industries makes\nhim non-eligible for the loan.<\/p>\n\n\n\n

Q. What is the minimum loan amount\nthat I can apply?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>Loan against property minimum amount\nis 5 lakhs. But loan amount for applying mortgage loan through Loanfasttrack\nstarts from Rs.15 lakhs.<\/p>\n\n\n\n

Q. What will be the loan turnaround\ntime?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>15-20 working days is theloan against property processing time.\n<\/p>\n\n\n\n

Q. What will be my loan against\nproperty tenure?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>Loan against property maximum tenure\navailable is for 15 years and minimum tenure is for 5 years (subject to the age\nof the borrower). Maximum tenure of 20 years is also available with some banks,\nbut will be case specific, available for self-employed professionals such as\ndoctors, engineers, lawyers, etc. and for salaried will be case specific.  <\/p>\n\n\n\n

Q. Is a loan against property for 30\nyears available? <\/strong><\/p>\n\n\n\n

Ans:- <\/strong>No.<\/p>\n\n\n\n

Q. Can loan against property be\nconverted to home loan? <\/strong><\/p>\n\n\n\n

Ans:- <\/strong>No. <\/p>\n\n\n\n

Q. What is the difference- loan\nagainst property vs home loan?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>Please refer to the link below \u201chttps:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/difference-between-home-loan-and-loan-against-property\/<\/a>\u201d .<\/p>\n\n\n\n

Q. What is the difference- loan\nagainst property vs personal loan?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>For immediate fund requirement you\ncan either apply for loan against property or personal loan. Both will fulfill\nyour fund emergencies, but both differ with respect to interest rates,\nprocessing fees, processing time, closure conditions, etc. The difference\nbetween the both is highlighted below in a tabular format.<\/p>\n\n\n\n
\n  \n <\/td>\n Loan\n Against Property<\/strong>\n <\/td>\n Personal\n Loan<\/strong>\n <\/td><\/tr>
\n Type Of Loan\n <\/td>\n Secured loan against property.\n <\/td>\n Unsecured loan.\n <\/td><\/tr>
\n Rate Of Interest\n <\/td>\n 8.75% – 11.50% p.a.\n <\/td>\n 11%-18% p.a.\n <\/td><\/tr>
\n Tenure\n <\/td>\n Upto 20 years.\n <\/td>\n Upto 7 years.\n <\/td><\/tr>
\n  \n <\/td>\n Upto 1% on the loan amount plus applicable\n GST.\n <\/td>\n Usually high upto 2.5% on the loan amount\n plus applicable GST.\n <\/td><\/tr>
\n Processing Time\n <\/td>\n 15-20 working days.\n <\/td>\n 5-7 working days.\n <\/td><\/tr>
\n Foreclosure Charges\n <\/td>\n Upto 2% on outstanding loan amount.\n <\/td>\n Upto 5% on outstanding loan amount.\n <\/td><\/tr>
\n Loan Eligibility \n <\/td>\n Subject to income and property valuation.\n <\/td>\n Subject to only income.\n <\/td><\/tr>
\n Overdraft Facility\n <\/td>\n OD facility available.\n <\/td>\n No OD facility.\n <\/td><\/tr>
\n Documents Required\n <\/td>\n KYC, financial documents & property\n papers.\n <\/td>\n Only KYC & financial documents.\n <\/td><\/tr>
\n Tax Benefits\n <\/td>\n Loan against property tax exemption is\n applicable only on interest paid provided required documents are maintained\n to justify the end-use. \n No exemptions for principal paid.\n <\/td>\n No tax benefits.\n <\/td><\/tr><\/tbody><\/table>\n\n\n\n
\n Apply For Loan Against Property<\/strong><\/a><\/strong>\n <\/td><\/tr><\/tbody><\/table>\n\n\n\n

Q. What is a loan against property\noverdraft facility?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>Loan against property overdraft is a\nfacility provided to you to get a mortgage loan in the form of an overdraft and\npay interest only on the utilized loan amount. Interest rates on mortgage OD\nwill be 1%-2% higher in comparison to the interest rates on regular mortgage\nloan. <\/p>\n\n\n\n

Get\ncomplete information on Mortgage OD – refer our blog \u201cKnow All About Mortgage\nOverdraft<\/a>\u201d.<\/p>\n\n\n\n
\n Apply For Loan Against Property OD.<\/strong><\/a><\/strong>\n <\/td><\/tr><\/tbody><\/table>\n\n\n\n

Q. What is the ongoing loan against\nproperty rate of interest?<\/strong> <\/p>\n\n\n\n

Ans:- <\/strong>Loan against property minimum\ninterest rates starts from 8.75%p.a. <\/p>\n\n\n\n
\n Apply For Loan Against Property Lowest Interest Rates @\n 8.75% p.a.<\/strong><\/a><\/strong>\n <\/td><\/tr><\/tbody><\/table>\n\n\n\n

To\nknow loan against property interest rates all banks CLICK.<\/a><\/p>\n\n\n\n

Q. Can a borrower apply for loan<\/strong> against property with bad CIBIL?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>A borrower can apply for loan against\nproperty with bad credit, but the low CIBIL has less chances for the loan\napprovals. Moreover there are Banks\/NBFCs that provide mortgage loans to the\nborrowers with low CIBIL scores provided the justification for the low score is\nsought, but the interest rates on mortgage loan and processing fee for mortgage\nloan will remain high for such cases.<\/p>\n\n\n\n

Read\nmore on CIBIL and its significance refer to the link – \u201chttps:\/\/www.loanfasttrack.com\/blog\/blog\/finance\/cibil-and-its-significance-in-home-loan\/<\/a>\u201d. <\/p>\n\n\n\n

Q. How much CIBIL score required for\nLoan against property?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>An average score of 750 and above is\nconsidered to be a good CIBIL score to apply for a mortgage loan in India.<\/p>\n\n\n\n

Q. How much will be my EMI for loan\nagainst property?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>Your EMI for mortgage loan will\ndepend on the loan amount, interest rate and the mortgage loan tenure. You can\neasily calculate your EMI using the loan against property\nEMI calculator<\/a> of Loanfasttrack. Our calculator will also help you to\ncompare the multiple EMIs with different loan tenures and interest rates and\nchoose the one that best suits you.<\/p>\n\n\n\n

Q. Can I opt for a loan<\/strong> against property balance transfer in future along with top-up?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>Yes. You may approach another bank in\nfuture for a mortgage loan balance\ntransfer<\/a> along with a top-up loan<\/a> to enjoy the benefits of low\ninterest rates on mortgage loans. However the loan against property top up\neligibility will be subject to your income eligibility and to the market value\nof the property. The cumulative principal loan amount and the top-up amount\ncannot exceed the prescribed LTV norms of the bank.<\/p>\n\n\n\n

Q. What are the loan against property\ntax benefits?<\/strong><\/p>\n\n\n\n

Ans:- <\/strong>Loan against property tax rebate is\napplicable only on the interest paid.There are no tax exemptions for the\nprincipal amount in mortgage loans.<\/p>\n\n\n\n

  1. Interest can be claimed as\nbusiness expenses under section 37(1) if the end-use for the mortgage loan is\nfor business purposes.<\/li>
  2. Interest can be claimed as\nbusiness expenses under section 24(b) if the end-use for the mortgage loan is\nfor purchasing house or home renovation or repairs. <\/li>
  3. No interest exemptions if the\nend-use for the mortgage loan is for personal reasons such as, children\neducation, marriage expenses, etc.<\/li><\/ol>\n\n\n\n

    Q. What are the loan against property\ndocuments required?<\/strong><\/p>\n\n\n\n

    Ans:- <\/strong>Loan against property documents list\nincludes:<\/p>\n\n\n\n

    1. KYC (pan card, aadhar card,\nresidential and office proof), <\/li>
    2. Financial documents <\/li><\/ol>\n\n\n\n

      For Salaried- 4 months salary slips, 2 years form 16,\n6 months bank account statement.<\/p>\n\n\n\n

      For Self-Employed- 3 years ITR copy, business profile\n& business proofs.<\/p>\n\n\n\n