Fulfill Your Dream By Availing a Property Loan for Your Personal Expenditures

Milestone events such as going for higher education, marriage or even the birth of a child are life goals we all look forward to. While these celebrations are heartfelt, they could also be fairly demanding in terms of finance. These may push you to think hard about how to fund these moments with minimum stress. In such a situation, your hard-earned property could prove to be your biggest strength. You can conveniently apply for a mortgage loan to organise funds for your personal expenditures. A Loan Against Property is one such option that helps secure funds at a short notice while the process is hassle-free.

A mortgage loan harnesses the value of your commercial or residential property to help you meet personal expenditures today. If you are considering a property loan, it is advisable to seek a reputed financial partner who has extensive presence all over the country. Their relationship managers will provide their expertise and knowledge to tailor a mortgage for you with customised features and a range of benefits. This way, your property could help you fulfil all your dreams and goals conveniently and affordably.

The fundamentals of property loans:

  • Principal amount: Principal is the sum that the lender will grant to you with certainty.
  • Interest rate: Interest rate refers to the cost of your mortgage. This is important to understand as it determines the additional funds you need to repay along with the principal. The interest rates for a property loan ranges from 11-20% per annum. But with a strong financial profile and track record, you could negotiate and get rates as low as 9% per annum.
  • Loan tenure: This is the period you are given to repay the principal along with interest and processing fees. The loan tenure for a mortgage could be as long as 15 years.
  • Equated Monthly Instalments (EMIs): An EMI is calculated by dividing the sum of the principal and interest over the loan tenure. EMIs help you conveniently repay your loan through a small amount every month.

Applying for a Loan Against Property is a fairly simple process - all you need to provide is a few documents along with the loan application form.

  • Recent photograph
  • PAN card
  • Address proof
  • Bank statements
  • Proof of business existence, company’s financials and duly certified income tax returns (business and individual) in case of self-employed applicants
  • Form 16, Income Tax returns and pay-slips in case of salaried applicants
  • Copy of your property's title documents and approved plan

Once the documents are verified and the application fee is processed, you could receive a principal amount equal to 50-60% of your property’s market value. Depending on your financial profile and track record, you could be eligible for a principal of up to 70% of your asset's value. Eligibility is generally evaluated based on your repayment capacity, which in turn is calculated by assessing various factors such as your income, your spouse’s income, your age and qualification.

It is essential that you approach a reputed financial institution so that your sensitive property documents and records are in safe hands. It is best to consult a Relationship Manager to understand your loan eligibility and the best terms you can avail of.

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