You can apply jointly with a co-applicant, but the co-applicant must belong to your family. While applying jointly, the loan amount can also be increased as per your requirements.
The process involves the repayment of loan through EMI (Equated Monthly Installments). It can be paid through Post Dated Cheques (PDCs) or Electronic Clearance System (ECS) from any account approved by Reserve Bank of India.
It usually takes between 7 to 10 days for the loan to be sanctioned once all the documents are submitted.
Some of the banks or finance institutions may offer this facility to take a loan against any other property.
The actual amount of loan against property provided to you depends on factors including your income, repayment capacity and your past credit history. It also depends on the number of dependents, assets, liabilities, stability/ continuity of your employment/ business and the co-applicant’s income. You can take loan against property up to 70% of market value of your property.
Fixed rate loan against property means the rate of interest on loan against property charged by the bank is same over the tenure of the loan. You should opt for a fixed rate only if you feel that the rate of interest prevailing in the market have touched rock bottom and the rates can only move upwards.
Floating rate loan against property means the rate of interest charged by the lender keeps changing with respect to the rates in the market over the tenure of the loan. Generally the rate charged is based on the cost of funds and the prevailing market rates. These rates vary periodically. Accordingly the tenure increases or decreases or alternatively the EMI increases or decreases based on whether the rates move upwards or downwards.
You can take a loan against property for any reason like getting your son or daughter married, expanding your business, taking a foreign vacation and sending your children to overseas for study. It is a secured multi-purpose loan with longer tenure and lesser rate of interest than a personal loan.
The property should be clear, marketable and free from any debts. There should not be any existing mortgage, loan or litigation on the property. In case your property qualifies the above mentioned criteria, the following documents are required to create a mortgage:
a) Title deeds of the property.
b) Other property related documents, if any.
One can easily get a loan against property given the person has a minimum age of 21 years, employed or self-employed with a regular income and is owner of a property (both residential and Commercial).