You know there are some benefits of mortgage loan.

Posted by Anurag Mishra on July 18th, 2017

There are many personal and business needs which call for lump sum investment, and it is not possible to go for personal loans each time. The home or property which you bought once as an investment grows in emotional & economical value along with the age. The potential value of the property can be encashed by taking the loan against property while mortgaging your property for various needs like business expansion, marriage purpose, medical expenses and other personal needs. It’s better to mortgage your own property and take a loan then asking for the financial help from the relatives or friends. The essence of self-accomplishment which you gained while buying the property with home loan remains intact while servicing the purpose for taking the loan.

Loan against property comes with some benefits for the borrowers:

  • Financers provide the loan for a longer tenure of fifteen years with smaller EMIs
  • Attractive interest rates are being provided, which are much lesser than personal loans.
  • Easy and hassle-free documentation.
  • Simple repayments with the monthly installments.

The loan tenure depends on some factors like: borrowers’ profile, age of the customer at maturity of the loan or specific repayment scheme opted by the borrower. You can apply individually or along with a co-applicant for loan against property. Try to keep a working member from your family as co-applicant as it increases the chance of getting your loan amount sanctioned. The amount of money you can get from the financer is nearly 50-60% of the market value of your mortgaged property.

The interest varies from 10-12% per annum depending on the property type and type of interest the borrower is opting for and the profile of the borrower. There are other charges like processing fees which can be up to 1-1.50% of the loan amount. Hope we have introduced you with the nitty-gritty’s of loan against property. Now drop the plan of taking a personal loan and prepare yourself with the required documents like property papers, tax return documents and other generic documents to get a mortgage loan.

Make sure that the property which you are thinking to mortgage should be dispute free. Unlike a conventional home loan and education loan this mortgage loan will not bring any tax benefit for you. Before applying for the LAP try to consider some essential factors like:

  • Take the loan for only the amount required, cut short unnecessary expenses.
  • Try to keep the loan term shorter to reduce the interest cost.
  • Pay your EMIs regularly to avoid being defaulter and risking your property from getting seized.

A proper planning can help you to utilize the benefits without any hassle. So before mortgaging your property make sure that the EMI burden does not weigh you down. Or you lose the property in order to serve the present purpose. Otherwise nowadays the lenders are far better than those traditional schadenfreude lenders, who were ready to capture your property at any cost.

Move ahead and utilize this opportunity to serve your present purpose. Visit the online aggregator sites to get the list of established and reliable lending organizations and choose the one ideal for your purpose and doesn’t pinch your pocket.

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Anurag Mishra

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Anurag Mishra
Joined: December 13th, 2016
Articles Posted: 108

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