A secured loan known as a loan against property can be obtained by pledging your house, place of business, or a plot of land as security. With such a loan, you are able to borrow money up to a certain proportion of the value of your property. Lenders also offer reduced processing costs and affordable interest rates for loans. What is ideal? The lender is not obliged to know how the money will be used because these loans are open-ended. This suggests that they have the financial means to cover all of your costs, including those for vacations, home renovations, and schooling. Like other loans, finding the best loan against property offer starts with choosing the right lender.
But with so many loan options available from different lenders, how do you choose? We at Elite Class Finserv help you to accomplish that. Whether you’re looking for a loan against residential or commercial property, we help you find the best deals. In order to submit an online loan against property application, we give you all the information you need. And that’s not all. We help you with every step of the loan process, from completing the paperwork to getting the money into your account.
Uses of Loan Against Property
A loan against property helps you cover expenses of any kind, no matter how big.
Home Renovation
Sometimes it’s necessary to update the house you’ve always called home. Make home upgrades with a straightforward mortgage backed by real estate. You won’t have to worry about going broke updating your kitchen or expanding your patio thanks to this financing.
Education
For higher education, there are frequently large financial needs. Spending your whole savings on education is not a wise financial move. Take out a loan against property to easily manage your living and educational obligations. Profit from the quick approvals and affordable lending rates of flexible lenders.
Business Expansion
If you want to expand your business, you need adequate cash to pay for things like power, rent, salaries, and other charges. With the help of a loan secured by property, you can easily afford these expenses. These secured loans have straightforward terms and reasonable interest rates. Utilize feature-rich loans offered by numerous lenders to grow your business.
Buying Property
The purchase of a home or apartment can also be paid for with a loan secured by real estate. Some homeowners choose to buy a home using this strategy when they are unable to get a home loan for the acquisition of additional property. You can use either commercial or residential property as collateral to be approved for a loan against property for this reason.
Wedding
You only settle for the best when planning your ideal wedding. The cost of a wedding could quickly rise. Thankfully, a loan backed by real estate can pay for all of the costs associated with your wedding day. You’ll be able to employ the best makeup artist or a magnificent location if you pay for all of your expenses using a loan secured by real estate.
Travel
Don’t put off paying for your future vacation until you have adequate money saved up. Get a loan against your home to pay for all of your travel expenses. You can travel to far-off exotic locations that you’ve always wanted to explore with a simple loan against property.
Eligibility Criteria
Anyone can apply for a home loan, regardless of their employment status (salaried, government, or professional). You only need to adhere to the strict qualifying standards set by banks and NBFCs. Although bank and NBFC eligibility standards for personal loans may differ, candidates frequently need to meet the following criteria:
Salaried or a working professional
Aged between 21 and 60 years
Having a job and a minimum 3 months experience
Having a minimum Rs. 25,000 net income per month.
Documentation Required
Photo Identity Proof
- PAN Card
- Aadhaar Card
- Passport
- Voter ID
Proof of Residence or Address Proof
- Title Deeds (including the chain of documents from all earlier owners), approval plans (if any)
- Property tax returns for the latest financial year
- Maintenance and electricity bills for the latest month
- Society registration certificate
- No Encumbrance Documents - commencement and occupation certificates
Income Proof
- Salary Slips (for salaried individuals) for the last 3 months
- Bank account statements of the last 6 months
- Form 16 for salaried and Income Tax Returns for self-employed individuals - for the last 2 years
Others
- Proof of business continuity for a minimum of 3 years if you are self employed
- Current and savings account statements for 1 year
- Appointment letter (if you have been a part of the company for less than 6 months)
- 6 months Bank statements of loan repayments (if any)
- Passport size photographs of applicants and co-applicants (if any)
Application Process
Loan Against Property Balance Transfer
A loan against property balance transfer occurs when a borrower moves their outstanding debt from their present lender to another one that offers competitive interest rates and terms. It can reduce your monthly installment, interest payments, and total debt. A balance transfer is often a prudent financial move early rather than later in the loan repayment process.
Balance transfers require security. They also involve some additional expenses like processing fees and foreclosure fees.Balance transfers require security. They also involve some additional expenses like processing fees and foreclosure fees.
Refinancing your loan through a balance transfer is a great option if you are still paying it off and have a considerable amount of interest to pay. When you balance transfer your existing loan to a new lender with a lower interest rate, the total interest component goes down. As a result, loan EMI costs are decreased.
Documents required for a balance transfer
- If you are considering a loan against property balance transfer, here are some documents you will need. Latest salary slips
- Bank account statements of the last three months
- PAN card
- ID Proof
- Address proof
- Title documents