Which loan is the best, a loan against ITR or a loan on a property mortgage?

Posted by Sarita Yadav on December 18th, 2021

Planning a house is one of the hardest tasks in a person’s life. People plan a lot before investing in such a big possession that is a house. Having a sweet little house is the dream of every family. People wish to have their own house but unfortunately, this is not fulfilled. Not all people have enough money to buy their own house. In India, the employment rate is low and on top of that, the wages are also quite low. People with low income or who are at the subordinate level find it difficult to create a living out of it as well as buy a home. To fulfill their dream, they often go for the option of a home loans.

There are two types of loans that are generally availed and most asked of by the customers. The types are as follows:

• Loan against ITR: When a person files for a big loan, he/she has to show the income tax returns of at least the past 3 years. This is used to look into the financial condition of the person applying for the loan. Your monthly income is calculated based on which the decision is made as to what is the loan repayment capacity of a person and how much loan should be provided.
• Loan on property: Loan against property is the safe method adopted by financial and nonfinancial institutes when it comes to granting the loan. Due to the rising number of cases of NPA, this technique was adopted. In this type of loan, the person can apply for a big loan as well. He/she will be able to get it easily if there is property against his/her name. The papers of the land/house are submitted to the bank as a mortgage. It is returned when the loan is finished. If the person is not able to repay the loan, the amount is recovered from the property put as mortgage.

When it comes to big housing loans and that too for a long time, the best option is to go for a loan on the property if the person has something to mortgage. Due to the limited financial knowledge of people in India, they find it difficult to apply for a loan. Not all options are known to them. 

One of the best organization that renders the service of home loans is Shubham home loans. The company provides formal housing credit to those with informal incomes. They are among the first organization in India to transcend from document-based underwriting to customized credit programs for each customer. It is a one-stop solution to all the problems related to housing loans.