Loan against property is one of the most popular types of credit availed in the market due to its variety of benefits. Since such loans are secured in nature, the interest rates levied tend to be relatively lower as compared to other forms of advances.
However, there are certain things to keep in mind while acquiring such loans against a property -
- Eligibility Criteria
A salaried individual borrower needs to be within 33 and 58 years of age to successfully avail a loan against property. For entrepreneurs, on the other hand, the age limit is within 25 and 70 years.
- Income Proof
Submission of documents showing the monthly income of a potential borrower is mandatory, as it proves the credibility of an individual. A steady source of income minimises the chances of a borrower defaulting on the total loan amount availed. Salary slips and/or financial documents of business can be submitted to prove income of an applicant.
- Interest Rates
Loan against property interest rates are relatively lower as it is a secured credit. You can choose between a fixed or floating interest rates, depending upon the market conditions. Also, you can opt for balance transfers on loan against property in case the interest rate regime opted for is not beneficial in the long run.