9 Questions to ask before you opt for a loan against property

Loan against property, also called mortgage loan, that allows you to keep your residential, commercial, and industrial property as collateral to get a loan amount.

To avail a loan these days is quite straightforward than before as many financial institutions provide a variety of services and benefits to the customers.

While some prefer an easy and straightforward process, whereas others focused more on the interest rate, repayment process and charges, thus it is essential to ask few questions to your lender before applying and finalizing a loan against property.

Question 1: How can I get a loan against property?

The process of getting a loan against property is easy than other investments. Housing finance companies like Shubham Housing Finance, Adhaar housing finance will evaluate your property first. And as per the valuation of your property and eligibility, your mortgage loan will be decided.

Question 2: What documents are required for a loan against property?

One should check that all the documents are in order before he/she applies for Loan against Property. 

The documents differ for a salaried and self-employed person:

A Salaried applicant needs to submit:

1. Application form with photograph

2. Identity and Address Proof

3. Latest Salary Slips

4. Form 16

6. Processing fee cheque

A Self-Employed applicant needs to submit: 

1. Application form with photograph

2. Identity and Address Proof

3. Address proof

4. Income proof documents, if available.

5. Bank passbook or Bank Statements.

6. Copies of the Property papers

However, Shubham Housing Finance Company requires minimum documentation and provide quick and hassle-free loans

Question 3: How can I repay my loan?

You can repay your Loan against Property through Equated Monthly Instalments (EMIs). At Shubham Housing Finance Company, you can get customizable EMI options as they help their customers to pay off other loans to rid them of debts.

Question 4: Can I take a loan against a house I have given on rent?

Yes. All that matters is that you have a proper title deed and other ownership documents. It doesn’t matter whether you live in the house or give it on rent.

Question 5: Does a bank/ NBFCs/ HFCs check my Credit Score before giving me a Loan against Property?

Yes. Even though this a secured type of loan, still banks and housing finance companies check the credit score of the applicant for his repayment history in case of Loan against Property.

Question 6: Which bank is best for a mortgage loan?

All Banks, NBFCs, and HFCs offer mortgage loans at attractive interest rates. As a customer, it might get confusing to choose the ideal lender for you. So to clear that confusion, you can visit the website and compare loan deals offered by financial institutions.

Question 7: What is the Eligibility Criteria for the Loan?

Usually, most of the banks and NBFCs need the borrower to be between 21 and 60 years of age, with a good credit history. The lender would also require you to have a steady stream of income, along with stable employment. In some cases, however, the lender may have some additional criteria for eligibility as well. To see whether or not you meet those criteria, before filing your loan application.

Question 8: Can a Commercial Property act as collateral for Loan against Property?

Yes. You can take a Loan against Property by providing a Residential or Commercial Property as collateral. You can also take a loan against a plot of land.

Question 9: How much time does it take for the disbursal of the loan amount?

This is yet another vital question that you must ask your lender. It varies from one lender to another. However, there are few financial companies like Baja Finserv, Shubham housing often takes less than a week, but it is advisable to get this information upfront.

We hope that you are now aware of some of the crucial questions that you must have the answers to, before applying for a Loan Against Property. If you have any other queries in your mind, feel free to ask in the comment box below.