5 Things to Consider when seeking Loan against Property
We borrow money for various reasons for education, home renovation, wedding, etc. This borrowing comes with an interest rate that may consume your savings. But you cannot deny the borrowing process. When you opt for a loan, you will find there are various types of loans offered by banks and financial institutes starting from a personal loan to loan against property. You can seek for the respective loan according to your repaying capability and the need. Loan Kumar, the leading loan provider in Delhi-NCR offers all types of loans for borrowers helping them during the emergency. According to Loan Kumar, the most preferred one is Loan against property. The reason is the low-interest rate than other unsecured loans including personal loans.
To avail for this loan, you need to follow certain eligibility criteria-
Good Credit Score-
If you are taking a loan against property, then you will need a good credit score. In fact, for any type of loan, you need to have a good credit score. You can check out the score using online services.
Good Source of Income–
Loan against property is given only when you have a good value property. If the value of the property isn’t high, then there is the least chance of getting the loan.
You need to be equipped with the right documents including property documents. If your property is under dispute then there is a high chance of getting rejected. Be ready with your property documents like title deeds, building plans, approval from the property owner.
Once you know the eligibility criteria for Loan against Property, let us check 5 things to know if seeking for education purpose.
Interest Rates Involved-
Since the loan against property is a secured loan, you need to pay nominal interest. If you have no idea about the interest rate will be charged then use loan against property EMI calculator online. It will give you the right idea about interest rate to be paid. However, if going for a longer term, then the fixed interest rate is the better option. Do read the terms and conditions before signing the loan agreement.
Check the Eligibility Criteria-
This is the most important part to consider when seeking a loan against property. You need to check the criteria by seeking assistance from the loan provider. The best thing is to check out their website where you will find all the information. Also checking out online websites will help you to get a brief idea about the eligibility criteria. If you fulfill the criteria then there is a good chance of getting the loan.
Know the Type of Property-
Not every property will fall under the loan against the property option. The property you are keeping as mortgage should be free from legal issues. The loan is usually sanctioned against both commercial and residential property. If the property is in good condition and free from all issues, then you will certainly get the loan under low-interest rate. Seek the guidance of the senior person in your family before going ahead with the property mortgage.
Know the application procedure-
When contacting the lender to know the application procedure right from seeking the loan to post sanction. What documents do you need to present? Application process and when the loan will be disbursed? All this information should be gathered when connecting the lender for the loan purpose. Some of the documents you will be asked are the property document, KYC, IT returns, bank account statement, etc. This will help you to get the process faster and easy.
Loan amount available for Education purpose-
Usually, loan against property is offered in 75% of the total property value. So you need to calculate the education loan you require and the expense you will spend throughout the education process. Check with the lender and calculate the loan you will be offered against the property for the education purpose. Here, you also need to consider whether you are seeking education loan for overseas studies or same country. The expenses may differ according to the country you seeking a loan.
Considering these points when seeking an education loan against the property will certainly help. Connect with the professional lenders like Loan Kumar in Delhi-NCR for hassle-free education loan.