Loan Against Property | How to Apply?
Loan Against Property – Financial troubles are a situation that can happen to everyone.
Taking personal loan for your financial problems can be an option.
Guide to Loan Against Property
But if you need a large sum, getting a personal loan will not be enough. In such cases, you can mortgage a property on your side and obtain a loan in higher amounts than the banks. Banks give loans for property. You must carefully select the property to mortgage and you must have certain characteristics in order to benefit from this loan against property.
What Banks Can Offer?
If you own a property, you can use this type of loans easily. Banks generally give credit to you by looking at the market value of your property. This value is up to 70% of your residential or commercial property.
For an example; you have a property worth $ 200,000. By mortgaging the bank, you want to use a real estate loan. The bank can give you a credit worth $ 140,000. For customers using loans against property, banks can offer a 30 year repayment plan.
Although the interest rates of each bank vary, banks generally give an interest rate of 10-15% for LAP.
Loan Against Property Eligibility Criteria
You must have some eligibility criteria for loan against property. The eligibility criteria sought by the banks can be listed as follows:
- You must have a monthly income regularly.
- Owning a commercial property or residence.
- The higher the value of your property, the higher the credit you will get depending on the value of your commercial property.
- The credits you have used before, the credit cards you have used, and any payments you have made will be considered.
- You must have a clean background for the banks.