How to ensure that you get the best Loan Against Property Interest Rates?
How to ensure that you get the best Loan Against Property Interest Rates?
There are times when people feel a cash crunch and start wondering how to arrange money for it. One can always opt for a personal loan or a loan against their property from any bank or other financial institute in this situation.
As the name suggest, a loan against personal property is the loan sanctioned against the mortgage of a personal property. This loan amount is determined according to the market value of the property which usually ranges from 40% – 60%. This loan is categorized as a secured loan due to the fact that the mortgaged property is used as a guarantee for the loan.
The loan against property are generally employed for the following purposes:
*Weddings
*Purchasing new personal or commercial property
*Studying abroad
*Set up new business
*Expanding an existing business
*Medical emergencies
Following are the factors that ensure one get the best loan against property interest rates:
1.Income and other liabilities:
The basic factors that determine the mortgage loan interest rate are one’s income, savings, and debts. The income considered for the calculation of an individual’s loan amount is the income derived after subtracting the taxes and other deductions.
2.Value of the property mortgaged:
Higher the value of the property, higher will the sanctioned amount of loan against the property. This will further help the banks and financial institution to determine the amount of loan against property interest rates.
3.Tenure:
Longer tenures of loan against property help to get affordable EMIs. The longer tenures also promotes loan against property interests rates to the lowest level possible.
4.Age:
Age of the borrower can be a decisive factor for the loan against property rates. If the borrower is in his 20’s or 30’s then he/she will be eligible for getting longer tenures for repaying his loan which in turn helps him/her to secure best mortgage loan interest rates.
Loan against a property is sanctioned only if the property is self-owned. It can be a residential or a commercial property but the ownership has to be in the name of the person who is applying for it. The factor that makes it a lucrative investment option is the fact that the interest rates are lower in comparison to other unsecured loans. One can easily liquidate the loan against the property when they have surplus funds without incurring any prepayment penalty. So people should not dither to opt for a loan against property while they are facing any cash crunch.