What Is A Loan Against Property? Know It’s Different Types.Purchase & Refinance Mortgage LoansUpdated on Dec 16, 2019 View more like this | Visit India, UN | Contact prafulla mishra |
As the retail lending facilities grew by 24% from December 2017 to December 2018, as much as 6.54 Crore, individuals had access to funds in the form of loans and advances. The growth has been primarily due to the increased availability of assets as well as consumer lending products, i.e., secured and unsecured credits and advances. The asset lending products like mortgage loan saw an increase of 13% in the market from 2017 to 2018. Loan against property, a type of mortgage loan, has played a primary role in this growth.
Today, with more number of individuals owning a house property, this mortgage loan has become a convenient source of financing for many people. The popularity can be attributed to a large sum of money as a loan against property with minimum hassle. Take a look at what this financing source comprises.
Overview On Loan Stats -
-> Rs. 25,000 Crore - Average loan disbursed by 2018 from top financial institutions
-> 17% - Growth in the loan on property portfolio by the first quarter of 2018
-> 43% - Increase in total disbursements by Q4 of 2017
-> Rs. 85,000 Crore - Total book size of loan on the property in 2018 as per ICRA
Know What A Loan Against Property Is -
A property loan is a secured form of financing you can avail by mortgaging your property to the lender. As an individual’s savings are not always sufficient to meet multiple financial requirements, they can fund these from an outside source by utilizing their property’s market value. Individuals can also effectively repay the existing loan over the available tenor.
This credit comes with the unrestricted end-user. Hence, you can use loan against property to meet several big-budget funding requirements, both personal and professional. They may include marriage expenses, a child’s overseas education, medical emergency, business expansion, vacationing abroad, etc.
The value of the loan you are eligible to avail depends on several factors. Some of them are mentioned below.
-> The property’s current market value and its age
-> The lender’s policies regarding Loan to Value (LTV) provided
-> Your income and current debt obligations
-> Your repayment history for other loans and advances
Based on these and some other factors, you become eligible to avail of the loan amount. Once you have estimated your loan requirement, you may use a loan against the property calculator to determine the EMIs you will need to pay for loan repayment. It also provides an insight into the interest you will pay and the ideal tenor of your loan against property.
Hence, you may utilize the LAP EMI calculator to estimate the loan amount you can conveniently repay for a given tenor.
Some lenders offer high-value loans against mortgage of your property that can sufficiently meet your big-ticket financing needs without straining your income or exhausting your savings. Also, renowned lenders offer the fastest Loan Against Property along with other attractive features like lower interest rates, Flexi Loan facility and many more.
They also bring pre-approved offers that make financing quick and easy. These offers are available on secured advances like home loans as well as unsecured advances like business loans and personal loans, along with several other financial products. You may check your pre-approved offer by providing a few essential details like your name and contact number.
Now, have a look at the loan against property types available in the market.
Types Of Property Loan -
Loan on the property in India can be availed in different types.
-> Property Loan With A Simple Mortgage – Among the most common mortgage types, it can be availed by merely mortgaging your immovable property to the lender. Failure to repay the loan in time leads gives the lender a right to sell the mortgaged property.
-> Property Loan With English Mortgage – Here, the borrower is personally liable to repay the loan and transfer of property are done with the condition that borrower can regain ownership on successful repayment.
-> Property Loan With Conditional Sale Mortgage – In this loan, the sale of a property is effective if the borrower defaults in repayment, but turns void if the repayment is made.
-> Property Loan Through Title Deed Deposit – In this loan, the borrower needs to deposit the mortgaged property’s title deed to avail credit.
Other types of loan against property include loans through usufructuary mortgage and anomalous mortgage.
Based on your suitability, you may choose to avail of any of these loans. Most popular credits include loan against a residential property, commercial property, lease rental discounting, loans for land purchase, etc. Before applying, make sure to check the eligibility criteria that qualify you for a loan on the property. Also, utilize the LAP EMI calculator to estimate your fixed monthly outflow and manage your finances effectively.
Today, with more number of individuals owning a house property, this mortgage loan has become a convenient source of financing for many people. The popularity can be attributed to a large sum of money as a loan against property with minimum hassle. Take a look at what this financing source comprises.
Overview On Loan Stats -
-> Rs. 25,000 Crore - Average loan disbursed by 2018 from top financial institutions
-> 17% - Growth in the loan on property portfolio by the first quarter of 2018
-> 43% - Increase in total disbursements by Q4 of 2017
-> Rs. 85,000 Crore - Total book size of loan on the property in 2018 as per ICRA
Know What A Loan Against Property Is -
A property loan is a secured form of financing you can avail by mortgaging your property to the lender. As an individual’s savings are not always sufficient to meet multiple financial requirements, they can fund these from an outside source by utilizing their property’s market value. Individuals can also effectively repay the existing loan over the available tenor.
This credit comes with the unrestricted end-user. Hence, you can use loan against property to meet several big-budget funding requirements, both personal and professional. They may include marriage expenses, a child’s overseas education, medical emergency, business expansion, vacationing abroad, etc.
The value of the loan you are eligible to avail depends on several factors. Some of them are mentioned below.
-> The property’s current market value and its age
-> The lender’s policies regarding Loan to Value (LTV) provided
-> Your income and current debt obligations
-> Your repayment history for other loans and advances
Based on these and some other factors, you become eligible to avail of the loan amount. Once you have estimated your loan requirement, you may use a loan against the property calculator to determine the EMIs you will need to pay for loan repayment. It also provides an insight into the interest you will pay and the ideal tenor of your loan against property.
Hence, you may utilize the LAP EMI calculator to estimate the loan amount you can conveniently repay for a given tenor.
Some lenders offer high-value loans against mortgage of your property that can sufficiently meet your big-ticket financing needs without straining your income or exhausting your savings. Also, renowned lenders offer the fastest Loan Against Property along with other attractive features like lower interest rates, Flexi Loan facility and many more.
They also bring pre-approved offers that make financing quick and easy. These offers are available on secured advances like home loans as well as unsecured advances like business loans and personal loans, along with several other financial products. You may check your pre-approved offer by providing a few essential details like your name and contact number.
Now, have a look at the loan against property types available in the market.
Types Of Property Loan -
Loan on the property in India can be availed in different types.
-> Property Loan With A Simple Mortgage – Among the most common mortgage types, it can be availed by merely mortgaging your immovable property to the lender. Failure to repay the loan in time leads gives the lender a right to sell the mortgaged property.
-> Property Loan With English Mortgage – Here, the borrower is personally liable to repay the loan and transfer of property are done with the condition that borrower can regain ownership on successful repayment.
-> Property Loan With Conditional Sale Mortgage – In this loan, the sale of a property is effective if the borrower defaults in repayment, but turns void if the repayment is made.
-> Property Loan Through Title Deed Deposit – In this loan, the borrower needs to deposit the mortgaged property’s title deed to avail credit.
Other types of loan against property include loans through usufructuary mortgage and anomalous mortgage.
Based on your suitability, you may choose to avail of any of these loans. Most popular credits include loan against a residential property, commercial property, lease rental discounting, loans for land purchase, etc. Before applying, make sure to check the eligibility criteria that qualify you for a loan on the property. Also, utilize the LAP EMI calculator to estimate your fixed monthly outflow and manage your finances effectively.
