In last decade, the real estate industry has taken a boom and the real estate property has become a monetary asset where the borrower can easily secure the funds from Banks/ NBFC’s in the form of loan against property. Banks/ NBFC’s are ready to fund the borrower against their properties as it involves a security and the lender’s money is safe in case of non repayment of the loan. The loan against property (LAP) is available on low interest rate and is helpful in any need of funds. Though, we all have a nature of saving for any uncertain occasions but at times this might not be sufficient to meet the requirement on an immediate basis.
LAP is a multipurpose financial assistance provided by the different financial service providers and empowers the borrower to know the true value of the owned property in the time of need. The borrowing purpose can be either personal or professional and can be availed by salaried and self employed professionals & Self Employed Non Professionals. The borrower can easily select, compare and apply for a loan against property at mudrahome.com. The online application form on the website facilitates you to use an EMI and eligibility calculator for free. The borrower does not need to visit any branch and can easily avail all the information regarding the loan against property and mortgage loan schemes available in India.
The following table is a glimpse of the Rate of Interest (ROI) generally charged by different Financial Institutions on LAP:
Factors affecting the rate of interest on LAP
When it comes on the loans against the properties the factors like the borrower’s profile, property value, property age, repayment capacity of the borrower and the income source can affect the eligibility and the sanctioning of the loan. The type of property also affects the rate of interest being charged.
The interest rate also varies from lender to lender and also the amount you borrow. The following table describes it well and you will be able to decide wisely