What Types of Property Accepted for Loans Against Property

One usually comes across the Home Loan Against Propertyonline when they search for the different financing options available in this day and age. It is just a loan that one can avail by putting their commercial or residential property as collateral. It is also known as a secured loan. The value of the property put up for the collateral decides how much the loan will be worth.

The types of property accepted for Loans Against Property

●     Self-owned residential property

●     Self-owned but rented commercial property

●     Self-owned but rented residential property

●     Self-owned commercial property

●     Self-owned piece of land

●     Self-owned and self-occupied residential property

There are several reasons why one may want to avail such a loan it can be from anything like a big wedding, expanding their business, or funding their children’s education. Acquiring new property, working on the current property, raising capital for a new or existing business venture are also some reasons why one might want a loan against property.

Value of your property is the only thing that the lender will consider to see if you are eligible for the loan or not. It is standard practice that the lender will give you almost 65% of the value of the property and loan against property interest rate is usually between 12% to 16%. The tenure of the loan offered is mostly 15 years but is subject to change in some conditions.

Your property will be evaluated at current market value, and the process will become straightforward if the following documents are in order.

●     KYC, i.e. age and address proof.

●     Income documents

●     Ownership documents of the property.

●     Bank statements for the previous six months.

●     A cheque for the processing fee.

Must Read: What are the Do’s and Don’ts while taking a Loan against Property?