There are many ways you could arrange for money, and one of those ways is taking a loan. You could take a personal loan for the amount required, or you could take a loan against your property. Let us explore the second option of taking the loan against our property.
What is a loan against property?
A loan against property is called as Secured Loan which is exactly what the name implies — a loan given or disbursed against the mortgage of property. The loan is given as a certain percentage of the property's market value, usually around 60% - 75%.
What purposes can I take a secured loan for?
Loan against Property can be taken for following purposes:
• Expanding your business or Home Improvement
• Getting your son/daughter married
• Sending your son/daughter for higher studies abroad
• Funding your dream vacation or paying old debt
• Funding medical treatments
What kind of properties can I mortgage for a loan?
You can normally take a loan against your self-occupied or rented residential property. This could be a house or even a piece of land.
What are the eligibility criteria to get a secured loan?
These criteria will vary from one bank to another. However, from all the host of factors, the common factors that all banks look at are:
• Your income, savings, debt obligations
• Cost/value of the property mortgaged
• your repayment track record for other loans, credit cards etc.
What are the normal interest rates and tenure for repayment offered for a secured loan?
Interest rates on loan against property range from 7.99% -19.99% and the loan tenure can be up to 25 years.
A secured loan is one of the best ways to raise money. The only disadvantage of such a loan is that if the borrower is not able to pay the loan fully, the bank or the financial institution can take possession of the mortgaged property. Base your decision on your repaying capabilities.For more information on you can also log on to http://www.loantoloan.co.uk