Category Archives: Loan Against Property

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TakeOver of loan. Why is it viable

After the PM Narendra Modi announced subsidy in pradhan mantri awas yojna (PMAY) , the interest on home loans have considerably gone down resulting in lower EMIs. This could be the best time for take over of your present home loans if you are not happy with your present bank.

In a layman’s language, take over of loan would simply be transferring your remaining loan amount from your present bank to another bank due to various merits it may accrue to you.If we talk of benefits of loan take-over, there certainly are many like :
1. Due to lower interest rates by other banks or
2. Poor lending services by present bank or
3. Your need for additional loan amount etc.

Question may arise which all loans can be taken over by the banks. Following are the loans that can be taken over by another bank.

1. Home Loans/LAP (for business and salaried class both)
2. CC/OD limit ( for business class )
3. Car Loans (for business and salaried class both)
4. Personal loans (for salaried class only)

Are you eligible for the take over of your loan? It depends on many factors like.

1. Client should be having valid documents about title of the property in case of home loan/ LAP take over for higher amount to be taken.
2. Client should be eligible as per the bank norms for additional loan amount.
3. Client should have paid off his instalments with earlier bank regularly.

So the take over of loans would be good idea in case you are eligible and your present bank is not meeting your requirements and expectations.

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Top Queries on Loan Against Property

What is a Loan against Property? How is it different from a Home Loan?

The 2 loans are poles aside. A loan against Property is a multi-purpose loan. The end-use might be funding your elder little one’s marriage, your more youthful baby’s schooling overseas, increasing your corporation. The collateral (secured asset) for this loan is a property which is already in existence or a plot of land.  A Home loan however is taken only for the intent of purchasing a residential property.

Why should I take a mortgage towards Property?

Your assets like gold, FD etc. can be used as collaterals for loans. Real estate is a valuable asset.  Which you could leverage this asset and obtain crucial money.

Shall I take a personal loan or a mortgage against Property?

An personal loan can be an all-purpose loan. Nevertheless, no collateral is required for a personal loan. If in case you have a property, you will have to leverage it for money. A loan towards Property ratings over a private mortgage for the following motives:

  • An personal loan is available at steeper interest rates as in comparison with a loan against Property
  • An personal loan is on hand for shorter periods (1-5 years) even as a loan towards Property is most of the time on hand for longer tenures of upto 15 years.
  • The Processing fee is lesser for loan against Property as in comparison with a personal loan.

Can a self-employed individual avail of a loan against Property?

Yes. Both salaried and self-employed candidates can acquire a mortgage against Property.