Business Loan against property: What to consider while applying
Category: Loan Against Property
Isnât it great that besides providing you the shelter, your home can also prove its value even in troublesome situations? With Loan against property you can use your house, not just for residential purpose but to solve your other financial crisis too.
There are few important things that you should check before applying for loan against property to make the most out of it. Thus, if you make sure that youâve checked all the important things, youâll feel more confident while applying.
1. Compare interest rates: Generally interest rate range from 12% to 14% and it varies from bank to bank, thatâs why itâs always advisable to check thoroughly what all the banks have to offer you. You can also take help of financial service providers to know where you can find the lowest interest rate and pick wisely.
2. Check Loan to Value (LTV) Ratio:
Every bank calculates Loan to value ratio differently, which is why you should pay attention where you are getting better value. Generally, LOAN AGAINST PROPERTY
provides you 60% - 80% of the market value of your property. Commercial property fetches lower LTV ratio but again, it depends on banks and the factor that property is self-occupied or rented.
3. Already Mortgaged Property: Itâs an advantage of taking a Loan against your property that you can use it, to take LOAN AGAINST PROPERTY, on which you already have home loan outstanding.
4. No prepayment charges: You can pay your loan before the tenure of the loan is over and that too without paying any prepayment charges because there are some banks, which provide you this option without any charge.
Get all your queries answered by experts:
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Creditnation.in is a unique platform which combines credit advisory, state-of-the-art analytic, process automation and last-mile connectivity in the lending space. They deal primarily in credit cards, loan against property, housing, personal, Mortgage loans
auto and business loans, and have already partnered with around 20 leading banks and NBFCs.