Keeping your existing property as mortgage is a great way to avail of low-interest loans to meet certain financial goals. You may need funds for various purposes – to pursue education abroad, start a business, manage expenses for a wedding, or pay for medical emergencies. By availing a loan against property in Mumbai, you can quickly gather funds and manage these huge expenses.
Loan Against Property: Features & Benefits
Property loans come with a host of exclusive features and exciting benefits for borrowers in a city like Mumbai. Here are some of the top highlights of a loan against property.
- High-Value Loans: You can get high-value property loans at affordable interest rates. The best part is that there are no restrictions on using the loan, so you can utilize it for a variety of purposes.
- Flexibility of Loan Tenor: Property loans can be availed of over a longer, flexible tenor of up to 18 years. With such flexibility, repaying the full amount becomes easier, as you get enough time to sort your finances prudently.
- Flexi Loan Facility: Some lenders offer an exclusive ‘Flexi Loan’ facility on loans against properties. This is similar to an overdraft facility that allows borrowers to avail of funds up to a certain limit sanctioned by the lender. Here, you pay interest only on the amount that is utilized and not on the sanctioned amount. Also, you can prepay the entire amount as per your convenience, only the rate of interest charged needs to be paid as per terms and conditions agreed upon.
- Ease of Balance Transfer: When applying for a loan against property in Mumbai, don’t miss out on the ‘Balance Transfer’ facility offered by lenders. It is one of the best features that allows the borrower to transfer the outstanding principal amount to other financial institutions or banks for attractive interest rates.
- Quick and Easy Disbursals: Property loan disbursals are quick and hassle-free with minimal paperwork. Once your loan application is approved and documentation in place, you can expect the amount to be credited to your bank account within 72 hours, at least with some lenders. However, know that some lenders can take weeks to disburse the loan amount. Thus, keep some buffer period.
Loan Against Property Eligibility
Although apply for loan against property is simple and straightforward, not everyone is considered eligible for the same. To qualify for such a loan, the borrower must meet the criteria set by the lender. While these criteria may vary depending on the lending institution, some of the common ones remain the same.
The applicant:
- Must be between the age of 25 years and 70 years
- Must be a citizen of India
- Must be employed with a minimum of 3 years of experience working in a public/private company or MNC. In case of self-employed borrowers, a borrower must be able to show at least four to five years of business continuity.
Apart from these, borrowers must also keep in mind that one’s credit score, repayment capacity, monthly income, etc., also determine whether or not the person is eligible for property loans.
The property to be mortgaged must also meet certain criteria – as set by the lender. It must be located in one of the cities the lender operates in. Plus, it must be in an acceptable condition to fetch appropriate funding.
EMI calculator on Loan Against Property
With property loans, you get the option of affordable EMIs to repay the full amount over an extended period of up to 18 years. To know about your monthly payable dues, you can use an EMI calculator on loan against property. The online tool takes into account the principal amount, repayment tenor, and rate of interest to give you a fair estimate of your monthly instalments.
The online calculator, thus, helps you make an informed decision while applying for property loans. Listed below are some of its major benefits:
- Easy to use: The steps to using this tool are easy to comprehend. Simply enter the required details about your loan to get an estimated value.
- Instant results: With this tool, you are spared from tedious calculations. The calculator will give you instant and accurate results following a simple mathematical formula.
- Ease of accessibility: Since it is an online tool, you can access the EMI calculator on the lender’s website anytime from your Smartphone or PC.
- Different combinations: The best part about using this tool is that you get to try out different combinations of the loan tenor, principal, and interest rate to view an EMI that caters to your needs. You can try various combinations as many times as you want.
Steps to Applying for a Loan Against Property in Mumbai
To apply for a property loan in Mumbai, simply follow these steps:
- Visit the lender’s website to fill in the online application form with necessary details.
- Submit all relevant documents to support your claim.
- Await verification of documents by lender.
- Get your sanction letter from the lender.
- Await legal checking and property evaluation.
- Get your loan disbursed to bank account.
The online application procedure is straightforward, faster and free of any hassles.
With several lenders offering loan against property in Mumbai, you should look out for the most competitive rates in the market. Compare all the features, find out all about eligibility criteria and then avail loan against property to fulfil your financial goals.
