Loans are generally taken if the person is running short of money. Loans can be taken by two sources. One is via formal sources and the other is via informal sources. The formal source includes bank and informal includes loans taken from relatives, friends or someone with whom you share a good personal relationship. Both sources have their own advantages and disadvantages. For example:- if a person takes a loan from the bank, then he has to go through a very long official procedure whereas informal loans can be granted without any paperwork or documentation. Generally, loan against property is taken from the bank so that a particular legal procedure can be followed and no loophole will be left for the future with your Loan against property for self-employed.
What is Loan against property?
Loan against property is a secured loan that can be availed by both the individuals, I.e. salaried or self-employed. The loan can be availed by mortgaging any residential property , commercial property or industrial property as well. The granted amount can be then used to fulfil various needs like wedding, medical aid or expansion of the business with Loan against property for self-employed.
Steps to Follow
Below-mentioned is some steps that should be followed to get hassle-free money from the bank.
- Always research:- Before going to any bank for taking any kind of loan always double-check on it. There are many money lenders who mention Loan Against Property feature in their portfolio. So do not believe blindly on any bank for loan against property.
- Maximum Loan Amount:- After checking and confirming all over things, you should check the maximum loan amount that you require and can be provided by the bank. Amount of the loan depends on the market value of your property.
- Eligibility:- Always check if you are eligible to take a loan or not. Every bank has its own eligibility criteria fixed for their customers to grant them a loan. But commonly, the age to apply for a loan is 18-70 years. Moreover for documentation, ID proofs like Aadhar Card, PAN card, etc. Here financial institutions help you get the best deal for your individual loan case.
- Application:- There are two modes of application, Online and offline. In the digital era, people mostly prefer the online mode of application for good transparency and also to avoid losing any paper document. Furthermore, short paperwork is also required at last.
After examining your documents and giving it a final thorough look, if every document is fine and qualifies the eligibility criteria made by the bank, then the loan amount is sent in the account of the holder for loan against property.
Dropline Overdraft Loan Against Property
An dropline overdraft loan is a variable amount of borrowing which is agreed with the bank to a set amount of limit against the market value of the property. In order words, a bank allows its customer to borrow a certain limit of money whenever they want to from the limit allotted by the bank. The beauty of this product is that an individual is charged only for the amount they utilize with principal payments to be done at the end of the tenure of loan( usually 10years).