3 Facts to Keep in Mind About Loan Against Property

It is a well-known fact that the need for money can arise at any given point in time. So, how do we overcome such a challenge? The obvious means being borrowing from friends and family or possibly selling off some valuable possessions to meet the needs. But did you know that your property could just be your saviour in the nick of time? Yes, you can lease your house for a loan through housing loans in India.

It could be overwhelming to think about leasing your property. But if planned properly and you are assured that you can repay the loans back in time, Loan Against Property (LAP) might be just the solution for you. Here are some of the following things you need to know while applying for Loan Against Property.

Compare the Loan to Value ratio offered by various Institutes

Always get your research done well. Try and get the best rate possible against your property. Do take quotes from various banks and compare the rates that are offered for your property. Public banks usually offer 65% of the property value whereas private banks offer a valuation of 75%.

Loan to Value of the commercial property is always lower than the residential property

If you wish to take a loan against a commercial asset, the Loan to Value offer will always be lower to the rates offered when leasing out residential property. The reason is simple, banks feel that the urge to save residential property is higher than the ones to save commercial property.

Interest rates vary

Always ensure that you compare the rate of interests provided by different banks before you zero down on one bank. Studying the interest rates smartly will help you choose the best loan and enable you to get the best deal in itself. The interest rates offered may vary from a range of 11.50% to 14% which is still beneficial as the personal loans are much higher than these.

If you wish to take a LAP on housing loans in India, you need to get in touch with a professional like JMFL. The team of experts can help you in a varied of services be it Investment Banking, Equity, Debt, Commodity Sales and Trading, Wealth Management, Portfolio Management Services, Asset Management, Alternative Asset Management, Financing and Lending, Housing Finance and Distressed Asset Management. Do get in touch with them and avail; professional services at your disposal.