NEWS & ADVICE : HOME LOANS
Loan against Property: A shoulder to rest upon in the current slowdown
By Joseph Samson
Print    Email    RSS   

Your property could be the best option for you at a time when there is an emergency and you need immediate funds at this time of slowdown when getting a loan approved is not at all an easy task.

Although money can be arranged through various routes such as personal loans but with monetary authorities increasingly lowering interest rates, loans against your property are cheaper and more feasible than the personal loans.

Loan against Property (LAP)

A loan against property (LAP) refers to the loan given against the property that is kept as a mortgage with the lender. It basically falls under the secured loan category where the borrower gives a guarantee by using his property as a security. Here the right to ownership of the property remains with the borrower.

Normally the banks extend loan amounting to a certain percentage of the market value of the property. This percentage differs from lender to lender but usually it ranges at around 40%-60% of the property's market value.

Moreover there are no restrictions on the purpose for which the LAP can be used. One can apply for a loan against property to meet marriage expenses, pay off huge medical bills, to meet holiday expenses or fund the child's higher education. It can even be used to pay off existing high rate loans. In fact this loan can be used for almost anything as it is backed by a sound security.

Any property whether it is rented to someone or self occupied by the applicant is eligible for mortgage that is to be kept for a loan. Even a piece of land can be used to take a loan against property. However some lenders do not approve a rented property for loans.


Page  | 12 |  
(Comments Posted : 1) Post Your Comments
1. wh0cd235350 buy genuine viagra
PhyllisImaky (Posted: Feb 15, 2017)
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Identify the cheapest home loan offer
An insight into the era of teaser loans
Bank loans that could glitter for you
Property: A good investment option to...
What if you default on your loan?


what is the balance loan amount on my Loan a/c...
email; rolandsmithtrustfund@gmail.com, are you...
how can applay for DSA. any age, qalification,...
How to view my home loan account statement
how to get status of home loan

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive