The Best Time To Make Use Of Loan Against Property

 


Loan Against Property is a secured loan for both Indian residents as well as NRIs. In Loan Against Property, you can mortgage your property to the bank or lender and borrow money against the property.


The loan amount will depend upon the property value. If you’re planning to move abroad, then opting for Loan Against Property might be the best time for you to seek an NRI loan against property. There are top banks in India such as SBM Bank, IDFC, HDFC and others that offer NRI loans against the property at low-interest rates.


In this article, you will know about some of the best times to use a loan against property for meeting your requirements.


Moving To Abroad Country

If you’re moving to an abroad country, then there are chances that you may need money, so a loan against property can fulfil your financial needs. Several banks in India are offering lucrative value of your property by considering the repaying capacity of the individual.


The banks check your profile before processing the loan request. Your history with loans and other essential aspects are considered before processing the NRI loan against property for your moving needs.


Some of the banks offer up to 70% of the property value after considering the repaying capacity of the individual. Some Banks also guide the individuals towards the loan possibilities against their properties to be free from the risk aspects. There is a fixed age limit for taking the loan against property. If you are a salaried employee, then the age limit is 60 years for getting a loan against property. And if you are running a business or are self-employed, then the age limit is 70 years.


In this way, you can assess your repaying ability and get a loan against your property by keeping it as your collateral. In case you miss out on paying the instalments, It may also affect your credit score and you might have to pay the penalty.


Business Needs


If you own a business and are willing to expand it, loan against property can be the best option for additional financial assistance. However, you must not take a LAP for starting a business, whether in India or abroad. You will have to repay the amounts according to the destined EMIs over the fixed tenure.


Overseas Children Education Needs

If you want to send your children to abroad countries for education, you can seek a loan against property to afford the expensive fees. Prefer taking the loan against property only if you are confident enough to repay it within the fixed time. Look for the banks that are offering loans against property for a lower rate of interest.


These are few of the instances when the individuals might need financial help, and here’s where loan against property can help the individuals.


Irrespective of your needs, you can reach out to the top banks or financial institutions to know about their loan policies and decide on the best one that meets your requirements.

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