Idea behind LAP
Money related inconveniences come in everybody's earlier or later. Property loans are the best alternative to battle with the money crunch. Loans in every case are simple and advantageous to get and you have various choices too. While there are personal loans accessible, the loan amount may not always be sufficiently adequate. Loan against property can be of great help in such cases, when the loan required is higher than what can be benefited through a personal or commercial loan. Loan against property Hyderabad are considered as the cheapest secured loans and consequently the loan against property interest ratesare additionally low.
Essentially Loan against property is a loan just where you keep your property whether commercial or residential as guarantee or security and you obtain commercial property loan or residential property loan against it. You may have of doubt of what amount can be obtained through a LAP? With a LAP you can profit an advance sum up to 40% to 65% of the market estimation of your property and with your Mortage loan Hyderabad.
Advantages of loan against property:
1.The value of the asset owned is created for a productive use.
2.The processing of LAP is faster than a housing loan, as the property already exists.
3.LAP allows the partial pre-closure without any penalties. This is perhaps an advantage as the overall interest burden or the tenure of the loan can be reduced by paying small additional amount.
4.In a LAP, the property continues to be in the ownership of the borrower. In case the borrowers are not able to pay the loan, they can sell the property and then settle the loan. Further this will also leave surplus cash for the borrowers to restart their financial life.
Loan against property eligibility
LAP can be applied by self-employed people if they prefer to set up a new business or require a huge amount of money. In such cases they can opt for a loan without selling or renting out their property. This property will be kept on mortgage and the loan amount will vary around 40-70 per cent of the property’s market value. The expenditures are excluded and LAP is the most secure of all the loans with a lower lending rate when compared to other loans. However, due to the structure of lending by the banks, the LAP is slightly higher than the housing loans.
You can analyze yourself now that- loan against property comes with many benefits but some risk factors are also there associated with it. As the property you provide is kept as collateral with the financial institution, it has all the rights to auction your property and recover the money by selling it incase you fail to repay the loan.
Qwick loans help you in lending the online loan against property and also enables feature like loan against property eligibility calculator so that you can know your eligibility of lending the LAP from us. So One should go for LAP only when someone is certain and sure about their cash flow and sure servicing EMIs on time.