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Loan Against Property: An Easy Way To Fund Your Requirements

By Author: Aishwarya Mahurkar
Total Articles: 291

A loan against property is a loan that is issued against the property. The loan amount that is issued is usually 40 to 60 percent of the current value of the property. It is a type of secured loan in which the borrower provides his property as security against the loan amount. There are several reasons why one may consider applying for a loan against property. A few reasons are:

• Business expansion
• Paying for your child’s foreign university fees
• Funding medical treatment
• Paying for your daughter or son’s marriage

A loan against property does not have to be taken only against your home. One can also use land as security for such a loan. Unlike personal loans, this type of loan is secured and charges a lower interest rate. Using the house or land as security allows the bank to charge a lower amount of EMI. This loan is the cheapest one that a borrower can avail after a home loan and has a long tenure of up to 15 years. It is believed to be an ideal source of funding for your requirements. Another advantage of opting for this form of loan is that you do not have to sell your land or home. The bank will also allow you to continue staying at the premises as long as you are consistently able to repay the EMIs every month.

Like any other loan application, you are required to provide certain documents to the bank. Your income, value of the property mortgaged, income tax returns, identity proof, records of payments of other loans, address proof and education qualification are a few of the many documents you will be required to provide to the bank along with your loan application. The banks require all these documents to help them verify your credentials. Hence it is extremely important for you to try to submit all the documentation together and quickly. This will improve the chances of your loan against property being sanctioned without any problems.

Before you apply for such a loan it is important for you to get all your affairs in order financially. A loan against property is an ideal source of funding for any major financial requirements you may have. It is vital that you plan it out carefully to ensure that the loan does not burden you in any way possible. One tip would be to try paying of any other smaller loans you may still be indebted with. This helps reduce any financial strain of the future and also will help boost your credibility with is crucial for you loan acceptance. Borrowers can use this type of loan to fulfil any of their dreams or life goals with ease.

Author Bio :

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the different types of home loan products such as home loan, Home improvement / renovation loan, loan against property.

Total Views: 60Word Count: 487See All articles From Author

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