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• The amount of loan available will be much higher when compared to loans such as a Personal Loan. Mutual Fund investments are subject to market risks, read all scheme related documents carefully. Thus, an individual can utilize his/her financial securities to access funds to have a dream home at flexible terms.
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Who can take a Loan Against Property :
Generally, higher rates apply for high-risk loans considering the factors of default, and low rates are chargeable on lower risk borrowings. If you’re looking for a home loan, expect a comparatively lower interest rate as low as 8.70%, and on the other hand if you’re looking to borrow against your property, expect interest rates starting at 9.70%. The loan can only be taken against a commercial, residential or industrial property. The property documents are kept as collateral with the lender which are returned only after successful completion of the repayment.
ALoan against propertycan be used for various purposes, such as the expansion of business, marriage in the family, funds for medical treatment, holidays, higher studies for children, etc. The moto of the company is to provide financial services through different Banks and financial institutions like loans,investments,insurance plans at a very affordable rates. An individual can equate loan schemes and policy and apply online on our website.
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In simple terms, a home loan is a loan taken to buy or construct a new home – i.e. the property is not owned by the loan applicant. A mortgage loan, also known as a loan against property, is a loan secured by a property that the loan applicant already owns. For both types of loans, you have to make full repayment of the loan amount within your retirement age.
Those having a higher income, good CIBIL score, and work in an MNC have chances of getting a lower rate as compared to those who lack these things. Fixed interest rates are fixed for a particular time and the EMI will be deducted on the basis of this rate for the total tenure. The interest and principal portion will be constant for the whole tenure. The principal and interest portion applicable on a home loan is variable.
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So, if you think that just like a home loan where there is an added advantage for borrowers to get tax exemption u/s 80C & 24, there is no such advantage with a loan taken against property. Be it a ready-to-move property or a land purchase or extension or renovation, the loan is granted for a property used or to-be-used for residential purposes only. For the instant processing of loans against securities, lowest interest rates, and hassle-free financing, you can connect to RURASH Financials.
Usually, the lenders approve up to 75% of the value of the property as a loan amount and depending on multiple factors. In the home loan category, the quantum of the loan amount to be approved depends on the borrower’s income, employment status, job type, and credit report. In favourable scenarios, you can get up to 90% of the value of the property as a loan. You acknowledge that the Website does not pre-screen content, but that the Website will have the right in their sole discretion to refuse, edit, move or remove any content that is available via the facilities. You agree not to use the facilities for illegal purposes or for the transmission of material that is unlawful, harassing, libelous , invasive of another's privacy, abusive, threatening, or obscene, or that infringes the rights of others. You may choose not to create One ID in which case you will not be able to display all your products across ABC Companies on one page.
Home Loan vs Loan Against Property
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The margin requirement for home loans is generally regulated by the Reserve Bank of India, in the case of banks and by the National Housing Bank, in the case of housing finance companies. The maximum loan that a lender gives, is only upto 90 per cent of the value of the property. For high-ticket home loans, the margin requirement can increase to 25 per cent. For loan against property, which is not covered under priority sector lending, the lenders have to keep a higher margin, which can range from per cent of the property. A home loan is a loan option, usually availed by potential homebuyers, who wish to buy a new home, plot, or fund an under-construction property.
Plot Area is the total area of the land that is occupied by a building. It can be calculated by multiplying the length of the plot by its width. The plot area can be measured in square meters or square feet and it indicates how much space a building will occupy on a given site. • The repayment period of the loans is up to 15 years which is much higher than Personal Loans but lower than that of a regular Home Loan. Unlike a home loan where you can get a maximum of 90% loan amount, the maximum limit for a loan taken against property is 60% of the property value. The amount may vary depending on the property location and income of the borrower.
Further, you can also claim an exemption under Section 24 on the interest payment on your home loan. Is generally in the range of 9-12 per cent, depending on the type of lender and the profile of the borrower. The rate of interest on loan against property, is generally higher than home loans but lower than personal loans. The rates may vary from per cent, again depending on the type of lender and profile of the borrower.
To recoup its investment, the lender may decide to sell the debt or restructure it. Second mortgages – With this option, a person only has access to 60% or 80% on home loans. In the case of Loan Against Property from Bajaj Finserv, flexible tenors range from a maximum of 18 years for self-employed individuals. Additionally,you can do a full or part pre-payment at any time with minimal charges.
One is used for the purchase or creation of house property, and the other mortgages an existing residential or commercial property to raise funds. Here, you pledge your existing self-owned properties as collateral to get a loan. Most lenders provide a maximum of upto 65%-75% of the market value of the property as the loan amount. The final loan amount provided will also depend on a number of other factors, such as the lender’s policy, the borrower’s profile & repayment capacity and nature of the property. ABCL and ABC Companies are engaged in a broad spectrum of activities in the financial services sectors.
As you can see, home loans and loans against property are not completely the same. When it comes to home loans, many financial terms confuse applicants. Mostly, borrowers get confused between a 'home loan' and a 'loan against property, and their features and benefits become more confusing for them.
However, the extent to which this benefit can be availed of, will depend on the use of the funds. In case the fund has been used to purchase another residential property, tax rebate under Section 24 is available to the borrower. Unlike home loans, no deduction is available on the principal amount though. Loans against property may also be obtained for personal purposes like education or marriage in the family. A loan against property can also be availed, to finance the purchase of another property, in case it is not possible to get a home loan against the property, due to any technical reasons like defect in the title of the property being purchased. The security pledged, for taking a loan against property, may be a residential or commercial property.
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