Is a loan against property a good idea?

 No matter how much you plan and save, you might hit a snag and need some extra money to handle unexpected expenses. In this situation, the ultimate option you can think of is to take a loan. While you might be in a state of confusion, about whether to go for a loan or not as it comes along with the baggage of long-term repayment, there is another kind of loan you may want to consider. Out of all the options available, a loan against property is the most suitable one. This loan is a secured loan, which means you can use your immovable asset as collateral. In other words, you can use your property to secure a loan, such as a commercial or residential property to get a bigger amount of loan. 

Processing time of LAP 

As opposed to a personal loan, the processing time of a loan against property is slightly longer as there is an in-depth analysis of the legalities of the asset you want to be mortgaged. Generally, the process may take about 15-30 days in all for your home loan to be sanctioned. However, BASIC home loan ensures quick disbursal of the loan amount as it adds to your credibility. BASIC home loan is a fintech platform that assists people with applying for a home loan at banks at low-interest rates. Applicants with a loan against property usually have to provide supporting documents of their income as a prerequisite to examine their repayment capacity. BASIC home loan checks all the details and finds you the best interest rate from various banks. 

Rate of interest

A loan against property is less risky than any other loan it is a more secured loan than a personal loan. It can be availed at a lower interest rate of 11% to 16% with a choice to opt for either a fixed or floating rate of interest. It can be quite a task to choose from a plethora of banks offering suitable interest rates and therefore BASIC home loan can be the assistant you are looking for. It is a one-stop solution to get a home loan from banks at a low rate of interest and helps you in making the right decision by opting for the most suitable lender for yourself. 

Tenure and amount

A loan against property is often considered for a longer-term period of around 5 to 15 years. LAP is generally preferred for higher amounts as compared to personal loans. It may become expensive because of higher disbursement of interest as it is termed for a longer period even though the interest rates are low.

Loan disbursal 

The disbursal amount in LAP is can range between 40-70% of the property value. The lender verifies the property documents carefully which leads to a longer processing time. If your immovable asset has multiple owners, the lender will have to issue a no-objection certificate from them to get the approval. To save you from these bone-breaking procedures, BASIC gets the application and required documents approved in no time. 

 

After this detailed discussion on the procedural steps involved in a Loan against property, it is imperative for you to get a free consultation with BASIC home loan today itself. It will not only make the process faster but also adds credibility to your application.