Applying for a loan against property involves very easy steps, but getting it approved faster can sometimes be quite difficult. Although it is not impossible to get the fastest loan against property, one needs to be ready with the documents and meet the eligibility requirements. Other than this, getting a loan on the first chance can also be possible if the loan amount, interest rate and tenor are properly scrutinised.
Steps to apply for a loan against property
The steps to apply for the fastest loan against property are as follows:
Step 1: Visit the online loan against property application page.
Step 2: Click on the “Apply” option, to start the application process.
Step 3: Enter the personal, property, income and other required details in the respective spaces.
Step 4: Click on the “Submit” option to enter the respective application.
Step 5: The management team from that particular financial institution will contact the borrower in case of any further queries.
Documents required for applying for a loan against property
The documents required to apply for the fastest loan against property are as follows:
Latest salary slips (of at least the last 3 months)
Documents of the mortgaged property
Bank statements (of previous 3 months)
Any document for id proof
Any document for address proof
Eligibility criteria for a loan against property
The eligibility criteria for loan against property are as follows:
Nationality – Resident in Indian
Employment – Self-employed and salaried individuals
Age – 25 to 70 years (for self-employed people) and 28 to 58 years (for salaried individuals)
Interest rates charged on a loan against property
The interest rates charged on the fastest loan against property are as follows:
Self-employed individuals – 9.5% to 18% (approx.)
Salaried individuals – 9.85% to 15% (approx.)
Benefits of applying for an online loan against property
The benefits of applying for an online loan against property are as follows:
Fast loan approval
In the case of a loan against property, an applicant is already keeping property collateral before getting the loan. Hence, the risk factor of the lender or financial institution is much less, which results in getting the fastest loan approval.
Under Section 24 of the Income Tax Act, 1961, one can get tax benefits on the interest paid on a loan against property, if these funds are used for financing the new home. Here, the maximum benefit a borrower can avail is up to Rs.2 lakh.
Lower interest rates
As the risk factor in case of loan against property is much lower than other loan types, an applicant can avail credit at lower interest rates. With lower rates, it will be easier for the applicant to pay off the debt faster.
With low interest rates on loan against properties, it is normal to have EMIs of lesser value. This can also be estimated before getting the loan using a loan against property EMI calculator.
Minimum to no prepayment charges
Loan against property also usually does not involve any prepayment charges or the most minimal ones. This makes it an attractive mode of credit for several borrowers.
Now, as everything about getting a loan against property is clear, it will be easier for a borrower to apply for it. For any more references, one can use the various calculators available with these financial institutions. These will make it easier for anyone to apply for the fastest loan against property.