Are you thinking of getting your offspring married? Or trying to expand your business or any emergency situation is disturbing you at this moment? Then you can apply for the loan for the commercial property, which can help you to get a sufficient amount of money to stable your situation.
Loan against property interest rates:
In case of flat interest rate, you need to pay a fixed percentage of interest on your total amount. The interest is paid to the EMI and gradually reduces the amount. If you want in pay the reducing interest system, then the interest amount gradually decreases during the process. This interest rate is counted every month on the basis of left out amount. Let us give you an idea how the bank or the lenders calculate the interest rate for the loan against property- the bank or the lenders will look at the market value of the property, your age, current employment status, CIBIL score, cash flow, clearance of the property title, your assets.
Eligibility criteria and documents required to apply:
The age limit to apply for a loan on the property is above 21 and below 60 years. The applicant’s current income has to be at least 1.5 times of the EMI rate and in case of settled jobs, the salary has to be 14,4000 annually. You must have minimum 2 years of experience in your current vocation and minimum 3 years experience in case of the business with valid documents proof. The documents that are required- residence proof (ration card, passport, driving license, and electricity bill), the proof of income is required in both the cases of settled jobs (pay slip of last 3 months and bank statements of last 6 months) and professionals (bank statements of the last 2 years, accounts detail of profit and loss). The property value must be evaluated based on its market price.
Some important things about the loan you must know:
You can apply as co-applicant to sanction the loan. In this case, your loan amount may be increased and the co-applicant has to be the member of your family. The loan amount can be repaid through EMI, ECS, PDCs from any authorized account, approved by the reserve bank of India. The bank usually takes 7-10 days to sanction the loan when the documents are submitted and verified.
You may apply for the loan even if you are already paying loans for home. Some of the banks or financial institutions allow this. The sanction of your loan depends on the capability to repay the loan, the stability of income, assets, and the market value of the property. You can also apply for the fixed rate of interest on loan against the property. In case of a floating rate loan, the lender or the bank decides the interest rate which can be fluctuating based on the market value of the property. The property against which you are taking loans has to be debt free and marketable.