Property Loan: Property loans are very useful when you need money in an emergency. Moreover, the interest rate is also low. To get this loan, know the details like eligibility and what documents banks ask for in the following article.
When they need a large amount of money, many people borrow money wherever they can find it. Loans or borrowings are taken even if the interest is high due to necessity. But if you own a property there is a way to get a loan at a lower interest rate. Banks and finance institutions are also interested in giving this loan.Since the property is the security for your loan, the loan is granted at a low interest rate without any risk. As a result, the property that you consider as a real estate asset will support you. By taking such loans there is no need to sell your property. Once the loan is cleared, your property will come back to you. Now let’s see how many types of property loans are offered by banks.Since the property is the security for your loan, the loan is granted at a low interest rate without any risk. As a result, the property that you consider as a real estate asset will support you. By taking such loans there is no need to sell your property. Once the loan is cleared, your property will come back to you. Now let’s see how many types of property loans are offered by banks.
Loan on Commercial Property
Banks give this loan if you own a commercial property. This means that if there are properties for office space, shops and commercial activities, banks will grant loans easily. The higher the value of these, the higher the loan amount. When you want to expand your business activities, or for personal and other financial needs, you can get a large amount of money through this loan. The interest rate will also be low.
Lease Rental Discount
If you lease your property to someone, you can get a lease rental discounting loan by showing proof of monthly income. You have to submit the monthly rent receipts to the banks. Banks decide how much loan to give you based on this. The higher the income, the higher the loan amount.
Loan on Residential Property
If you have residential properties like houses, apartments, residential complexes, you can get a loan through them. Like commercial property loans, these also have a higher loan amount. Very useful when money is urgently needed.
Loan on joint property
This loan is required when a property has more than one owner. You have to submit no objection certificate from other employers to the bank. It must be signed by all the co-owners.
Top Up Property Loan
If you have already taken a loan on a property, after some time you can request the banks to further increase the loan amount. But the terms of these loans are stricter as compared to other loans. Banks sanction the top up loan amount after examining the details like whether you are paying the loan regularly every month and whether your CIBIL score is good.
Eligibility
You must be an Indian to get a property loan.
Age should be between 21 to 70 years
If employed, the monthly salary is at least Rs. Should be 30 thousand.
If you are self-employed or a businessman, banks will set a certain limit for how many years you have been in these activities.
Documents like ID proof, address proof, bank statement, pay slips, original property documents have to be submitted to the banks.