The best time to use loan against property when is when you need to fulfill various business and personal requirements. The funds can be extremely useful during business expansions, buying equipment for businesses, pursuing higher education or for that matter closing off loans.
The purpose of housing loans in India is to help you unlock the asset like property to understand the true value and to utilize the collateral value for the further personal benefit. The advantage of using loan against property is as follows:
They provide a low-interest rate. The interest rates when compared to personal loans are far lower. This makes it quite a popular option to acquire a loan. The actual potential of the property is being realized when the bank assesses the total worth of the property. Up to 70 % of the total value of the property can be realized through a loan.
Following features too make it lucrative to consider loan against property. They provide door to door service and speedy approval. As the documentation procedures are fewer, the loan procedures are fast-tracked for approval. The scheme is great for public service, multinational and public listed company employees can avail the loan through this scheme.
The criteria for availing housing loans in India should be that an individual should be 21 years of age when applying for the loan and the maturity and completion of the loan should be lower than that of an average retirement age.
When talking about corporate borrowers the following entities are eligible for LAP: Partnership firm, Individual proprietorship and private limited organizations.
As mentioned before, there is fewer document required to be submitted for getting approvals for the LAP. The documents include a completely filled application form, the KYC documents that consist of an identity proof, signature and photo ID proof. You need to submit your proof on income too by providing your organization’s offer letter and three last month’s salary slip. Bank statement needs to consist of 6 months of dealings. All the property documents, and the processing fee cheque.
For acquiring a LAP you could take assistance from a leading banking financial services group that provides a gamut of services to business, corporates financial institutions and also individuals. Their diversification into various financial fields has helped them garner a huge client base for whom they have been successfully and satisfactorily providing services. Visit the JMFL institute website and see the various offering they have in store.