What is a loan against property?

It is a secured loan where the property is pledged to borrow the amount from the bank. The loan can be availed against property owned by the borrower for residential, commercial or the industrial purposes. In comparison to personal loans, loan against property is a better option for individual who wants to meet any personal requirements with a bigger amount. Such a loan enables more repayment time along with lesser interest rates. Loan is provided by the banks which is usually 50%-80% of market value of the property mortgaged.

Why should one opt for Loan against property?

Both personal loan and loan against property are good options for the borrowers. Loan against property offers wider benefits to the customers.

The leading banks including the traditional lenders offer the loan against property making it conveniently available. Loan against property has better tenures and a larger amount is sanctioned against property in comparison to personal loans. Also, interest rates are much lower to personal loans and hence lower EMI. Hence, this makes it a suitable option for a person to utilize their income to the maximum potential.

Which are the documents to be submitted for taking a loan against property?

• Personal Documents

1. Application form with Passport Size Photographs of all applicants and co-applicants.
2. PAN Card of applicant and co-applicant.
3. Identity Proof - Voter ID / Driving License / Passport / Aadhar Card.
4. Address Proof - Voter ID / Driving License / Passport / Telephone Bill / Electricity Bill. / Aadhar Card
5. Ownership proof of residence either in the name of the applicant or jointly with family members.

How do I apply?

Onefinway has a tie-up with various banks who offer customized Loan against property depending upon your requirement. An applicant has to answer 2 basic questions which are based on personal & financial numbers. Post reply, the system automatically shows various options available to the borrower from different banks to choose and decide.

Once decided, Onefinway gives the option for proceeding further either online or offline with the documentation process. During this journey, a loan expert from the company helps you out for expediting the process. The borrower has complete online access to track the loan application.

Why should I go with Onefinway?

We take pride in having the expertise to cater to the requirement seamlessly since our inception in the year 2002.  Our dedicated loan expert provide you with an excellent customer experience. Our efforts have been recognized by various institutions and we have an association with 40 banks and NBFCs which gives customers multiple loan options to choose from. We are a process oriented and digitised company safeguarding the interests of customers and their confidential personal data. 

Going to take Loan against Property. Refrain from making these Mistakes!

Loan against property is one of the most popular products offered by the banks. It is a secured loan and one should be clear about the details of the product before taking it.

Let us take an example of Raghu, he earns Rs.60 thousand every month. He needs Rs.15 lakh to meet his expenses for future investments or emergency. Given his income level he should be careful about the following:

1. Property being pledged - Clear Valuation papers of the property should be in place. Along with the knowledge that not the entire amount basis valuation can be expected as a loan from the bank. Hence, it's better to have loan amount lesser than the property amount.
2. Rates - Personal loan interest rates are more than loan against property for Salaried. In case the bank is charging you more or equivalent to personal loan rates then it's better to check with other financial institution.
3. Ownership - In case property has co-owners, better to have their documents in place as well along with their consent without which documentation can be on hold.
4. Custody - Be very clear to read the terms and conditions like ownership and charges in case of late payments or inability to repay back the loan. The borrower has the right to utilize the pledged property, but the bank has the right to take it when one defaults.

Be Clear from all Aspects before it is too Late and use Onefinway to compare the best loan against property!

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