Unexpected situations can arrive any moment, and we need to be prepared for them. That’s why loan against property is a good choice. Banks in India have organized this loan to be affordable to everyone and to help you in your hour of need. The application process is very simple, which means that you can get this money in no time.
A loan against property is a secured loan, therefore, the bank will give you the loan amount after considering a collateral. The loan money you’ll get will be between 40% and 70% of the whole value of your property. However, if you don’t repay the loan, the bank will use your property to cover the loan expense.
The advantages of Loan Against Property
This loan is a great way to improve your business. You can use this money to double up your income. You can also invest it in some other great project that can bring you benefits. The options are many. You shouldn’t worry about repayment because repayment failure is a rare thing to happen.
When you are in an emergency and you need money fast, this loan can provide you that. The application process is very simple, and the bank will react immediately. This is because banks in India understand their clients, and they know that urgent situations cannot wait.
What you need to know in order to apply for the loan
Every bank in India can offer you this loan scheme. However, they are all different. Even the documents required to process the loan are different. This means that you will have to do a research on your own to see which option is the best for you. You can visit the Paisabazaar website and use the free online tools to check your EMIs and Eligibility- Loan Against Property EMI Calculator and Loan Against Property Eligibility Calculator.
Interest Rate range for Loan Against Property
Loan against property Interest Rates are different for each bank and for each loan scheme. The variety of Interest Rates can be seen in following banks:
1. ICICI Bank: Interest Rate is between 11.5% and 13.75%
2. Citibank: Interest Rate goes from 10.50% to 11.60%
3. Punjab National Bank: Interest Rate ranges from 11.25% to 15%
Patiala banks and their schemes
The banks for loan against property in Patiala can offer some good loan schemes:
1. Union Bank of India:
- Interest Rate can go up to 12.40%
- Maximum duration of loan tenure is 10 years
- No pre-payment charges
2. Corporation Bank:
- Interest Rate ranges from 12% to 14%
- Loan tenure can go up to 10 years
- There is margin but only for new clients. It amounts 15%
3. Federal Bank:
- Interest Rate is 12% onwards
- Processing fee is 0.50%
- Maximum loan tenure is 10 years
4. Bank of India:
- Interest Rate is 11.2% onwards
- Maximum loan tenure is 12 years
- You will need a gross monthly income up to Rs 1 lacs in order to apply
Check the Paisabazaar website to know various schemes of loan against property in Patiala. Simply enter your details and choose the loan scheme as per your requirements.