A loan against property is a secured loan that is very popular. A loan against property is a multi-purpose loan that banks and financial institutes give. This type of loan can be received using the currently owned property as collateral.
Depending on the property’s age and type, you can receive up to 70% of the property’s market value as a loan. You can avail of property loans on both residential and commercial property by providing the required documents.
Here are some factors you should keep in mind while receiving a property loan.
The Interest Rate :
The interest rate you are being charged varies on different factors like your income, loan amount, tenure, CIBIL score, banking institutions, etc.
When you are looking for a loan against property in Delhi, you must go with the most affordable option. It would help if you had to spend some time to find out the lender who offers the cheapest interest rate for a mortgage loan.
The Loan Amount You are Seeking
In loan against property type of loans, the amount you get depends on the market value of your property. Usually, you can get up to 70% of the market value of your property as a loan. If you want to borrow a higher amount, you can quickly get up to 25 Lakh rupees as a loan against property from vintage finance.
The Repayment Tenure:
At vintage finance, we offer flexible repayment options. Small tenure makes your EMI smaller, but the longer term also increases the cost of borrowing the loan against property. Longer tenure increases the cost of borrowing the loan because of the interest of the loan calculator in a compounding manner.
You Are Unable To Get Tax Benefits:
This is a significant factor. You cannot avail of any tax benefits on loans against property like home loans and education loans. You are required to pay tax on the amount used to repay your loan.
Processing Fees and Other Charges:
Processing fees and other charges is a significant factor that borrowers forgot most of the time. Some lenders may impose prepayment charges, statutory charges, service charges.
You should have to consider all these charges evaluating the actual cost of the loan against the property. These charges may look small but make a significant change in borrowing the loan. And also effect your repayment ability.