Loan against Property- Best Way to Achieve Your financial Goals

Various products are available in loan segment. One of the most popular products is loan against property. In finance market it is commonly known as LAP. Through these loans you can conveniently access the funds at lower interest rates as compared to personal loan and any other unsecured loan. Loan against property or LAP can be availed at following kinds of properties:

·         Residential property

·         Commercial property

·         Industrial property

These loans can also be taken against the plot but not just against the built property. Most of the times the price may be higher than usual home loans but it is certainly cheaper than any other forms of loans. You will find very easy to avail LAP and affordable to repay. Thus, LAP is considered as the most sought after loans as you can utilize these funds to make your dreams come true. Loan against property or LAP can be availed to fulfill the following requirements:

·          

      Business expansion

·         Personal needs

·         Asset attainment 

·         Property renovation

·         Debt consolidation

·         Investments

·         Mortgage loan buyout

·         Refinancing the self financed property

The loan providers will carry out the due diligence on the property and valuation will be done on the market rate basis. Generally 70% value of the property is granted as loan. As LAP is the secured loan so you will get the higher loan amount as compared to other unsecured loans available such as personal loan or gold loan. Banks charge nominal processing fees with option interest rate with floating and fixed. Loan tenure is generally less than a decade but some lending institutes extend it to 15 years also.   

One of the prominent banks which are offering the longer loan tenure and attractive interest rate is ICICI Bank. ICICI Loan against Property is available at attractive interest rate with 15 years of loan tenure. Door step services, complete transparency and faster processing will take you ahead in realizing your dreams. So enliven your dreams with icici mortgage loan.  

   

Where There is a Home, There is a Loan

No matter whether you are going to do ‘Griha Pravesh’ in your first home or buying another home for investment purpose, it becomes elementary to choose the right loan that best fits your needs at an honest cost. It is always beneficial to get some knowledge about the service that you would be availing.

Objective of Home Loan

Banks generally finance for-

·         Purchase of under construction or new or resale residential property

·         Purchasing the plot

·         Construction of house

·         Renovation and extension of existing unit

·         Refinance of existing home loan

Amount of Loan

Financial institutes and banks normally finance 80% of the market value of the property and 90% amount in case of loan amount below Rupees 20 Lakhs. According to the notification of RBI, stamp duty and registration charges are not funded by banks. It implies that cash down payment is 1—20% of agreement value of the property and stamp duty, registration charges are additional cost. 

Disbursement of loan amount depends on the various factors such as income, monthly outgoings, existing loans, track record of repayment and property valuation by the bank etc. To increase the eligibility amount, you are suggested to add earning member of your family as co-borrowers such as your parents, spouse, and children and in some cases you can add earning brothers too.

Interest Rate Calculator

Interest rate for banks is calculated certain above the base rate whereas housing finance institutes calculate rate of interest above or below the Prime Lending Rate (PLR). This difference is called Spread. Further interest rates are available in two types- fixed and floating. It all depends what you want to choose.

As a prospective borrower you should do proper research and comparison. With special offers for women, ICICI bank has large network all over India to provide best services to its customers. Loan is the game of number and calculations. Right calculations help you to achieve the best. In this number game ICICI Loan Calculator is your perfect guide.