123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

What You Must Know If You Are Planning To Take A Loan Through A Mortgage.

Profile Picture
By Author: Finway Capital
Total Articles: 96
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Financial Crisis can hot anyone owing to the volatility and the recession in the market. The unpredictable market urges people to take loans and with those who are first-timers, it is difficult to take loans. This happens due to low creditworthiness. During such a scenario one can take a loan against property. This is different from taking a Business Loan in Delhi. If you own a property, you can mortgage it to the bank and against it can receive a stipulated amount. This loan needs to be repaid in monthly installments and has a rather low-interest rate. Below listed are things you must know while opting for such a loan.

Low Interest rate: When a Loan Against Property is taken, since you have given your property as security, the interest rate is low. This allows an easy repayment of the loan. When collateral is offered to the bank, the money that the bank has given as a loan becomes safe. So in the worst-case scenario, the borrower is unable to pay, the bank can take the property under its jurisdiction.

No Prepayment charges: There are no prepayment charges if you wish to repay the loan before time. This is unlike other kinds of loans wherein the bank usually charges a prepayment while you plan to repay the loan before the loan period. However, now some banks have started charging, but this amount is very low.

Long term of the loan: The tenure for collateral loan ranges from five to fifteen years. This duration is rather long when compared to an unsecured or personal loan. This gives enough time to the borrower to repay the loan.

Easy loan: When you opt for a personal loan from a bank a lot of documents are required. The processing of the same also takes a lot of time. This is unlike the loan with collateral. Here, the paperwork is minimal. The value of the property is estimated by the bank and then the loan is extended without further ado.

EMI Low: When the monthly installments are low it becomes easy to repay the amount. A person opts for a loan in the form of a Business Loan in Delhi. This is taken to meet the expenses, which could be either business or personal. In both cases when you do not have a good credit score you can avail of this loan and repay in easy and low EMI's.

Total Views: 25Word Count: 411See All articles From Author

Add Comment

Investing / Finance Articles

1. Hiring An Asset Management Company In India
Author: Avendus Group

2. What Is Derivatives Market
Author: AtishPatil

3. Why A Personal Loan Can Be Beneficial For Your Home Remodeling
Author: Diksha Sharma

4. Us Tax Returns Advantages For Reducing Tax Liabilities
Author: Berkley Josh

5. Notice U/s 148- Income Escaping Assessment
Author: AKT Associates

6. Roles Of Investment Banking Companies In India
Author: Avendus

7. The Use Of Margin Calculators In F&o Trading
Author: Maithili Pawar

8. Financial Management During Business Downfall
Author: EFL India

9. All You Need To Know About Credit Linked Subsidy Scheme
Author: Atish Nair

10. Important Things Everyone Should Know About Litecoin
Author: Ripple Coin News

11. Mutual Funds In India You Can Use To Make Money
Author: Shashank Pawar

12. Short-term Or Long-term Investment Plans - Which One Works Best For Me?
Author: Shashank Pawar

13. A Comprehensive Guide To Mutual Fund Investments
Author: Shashank Pawar

14. Everything You Need To Know About Equity Market
Author: Nirav Desai

15. Us Expat Tax Help Uk Is Now Offered To Clients By Professional Tax Advisors!
Author: Olga Ilyina

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: