Planning to take a loan against property?

These loans are offered by various banks against properties. Banks offer a relatively larger sum of money when a property is used as collateral, than in other types of loans.

Loan against property (LAP) is a secured loan is taken to fund for various purposes. Starting from business-related purposes, to fund a child’s education, medical emergencies, weddings or any other personal needs. These loans are offered by various banks against properties. Banks offer a relatively larger sum of money when a property is used as collateral, than in other types of loans. However, the amount of loan that the banks offer generally up to a certain amount that the EMI you pay does not exceed 60 per cent of the monthly payment you receive in hand.

If you are also planning to take a loan against your property, keep these things in mind before opting for one.

1. Before approving for a loan, banks check certain records such as payment-track records and repayment ability of the individual. However, if you have other loans or existing liabilities, your eligibility for another loan goes down further.
Certain banks also take into consideration the number of dependants in an individual’s family. More dependants are considered as lower repayment capacity.

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