Does your credit score prevent you from getting credit from your lenders? Or you need urgent access to funds, but you don’t have any credit history? The reason could be anything, but it isn’t the end.
A low credit score, no credit history, or unstable income source can turn down your loan or credit card application. But having said that, you still opt to make the way to funds. Loan Against Property or Mortgage is a kind secured loan you can get from your lender. You present your home or any commercial property as collateral to your lender to accumulate funds against it.
Generally, you can obtain up to 70% of the market value, but each lender has their policies. Your lender will ask you to furnish all the necessary details regarding the property. And once everything is complete, you get the funds into your account. If you’re also making up your mind to get one:
The interest rate you may be paying on your property loan may vary based on various factors, including your salary, loan size, tenure, credit background, which will also differ from the financial institution or lending service you chose. When you get a property mortgage loan, you can make sure that you get the most affordable deal for your asset. To find a bank or loan that will give you a reasonable interest rate, you need to spend some time doing your homework. Although minor interest rate differences do not sound like much, the willingness to repay the loan in the long term would significantly affect it.
For home loans, the amount of loans you will get depends mostly on the property’s market value. Depending on the lender, one will usually get anywhere from 40-80 percent of their property’s market value as a loan. It is best to search around to locate a lender or bank who can give you the highest possible loan price for your property if you are finding a higher loan.
You will be granted a flexible loan tenure of up to 15 years by most banks and lenders. Although a longer term of the loan makes the EMIs lower, thereby improving your loan’s affordability. You should bear in mind that a longer tenure often raises the borrowing rate. It’s how the interest on the debt is compounding measured, meaning you spend higher in the long term if you have a more extended period.
A critical thing to remember is that you won’t get any tax benefits on loans against property, unlike most loans, such as education or home loans. The money that you use to repay your debt would cause you to pay tax. Therefore, individuals often appear to gravitate towards securing a home loan or an education loan for such reasons, as they attract tax benefits despite higher interest rates.
Fair Fincorp, a prominent Loan Against Property Consultant in Dehradun helps you get attractive interest rates on a mortgage. Send your inquiry online or call 9897666966 for assistance.