Financial backup is one of the essential aspects that you look forward to while taking loans. Loan Against Property is an excellent option while considering which loans to take since it allows you to possess multiple properties at once and is a secured option for meeting your funding requirements.
Repayment of these loans can be made in equated monthly instalments (EMI) in a predetermined tenure along with a fixed interest rate. The primary key to such loans is the rate of interest. The rate of interest in such loans is significantly lower than other loan types. Here is your complete guide to taking loans against Property.
You can apply for loan here: https://www.fullertonindia.com/loan-against-property.aspx
Advantages of Taking a Loan Against Property
The benefits of using the Property against loan EMI calculator are listed below:
Simple and Cost-Effective Option
The calculator is available online, which means it can be used by anyone, anywhere, at the click of a mouse. Not just that, there are also no additional costs required to use the property loan calculator.
Provides Long Term Perspective
Every detail about the utilization of funds, from processing fees to taxes, is determined with the help of the property loan calculator. This allows you to thoroughly study and manage your finances from a long term perspective.
No scope for errors
There are always chances of mistakes wherever human intervention is concerned. However, since the property loan calculators follow a computerized or mechanical process, there is no scope for such errors. This, in turn, helps you get accurate as well as reliable results.
What are the disadvantages of availing Loan Against Property?
The disadvantages of availing of loan against Property are listed below:
- Seizure of Property
The primary disadvantage of opting for loans against Property is the chance of seizure of the commercial or residential property in case of failure to repay the loan amount.
Before transferring the loan amount, various factors are considered. These factors include your credit score as well as your history of repayments. The whole process of such evaluation consumes a lot of time.
- No proper standard of evaluation
Different groups or individuals can do a valuation of properties. In such a scenario, valuation done by one group or organization may not be the same for all the others. This creates ambiguity in determining the accurate value of the Property.
What are the eligibility requirements for availing Loan Against Property?
Various factors are determining the eligibility requirements for Loan Against Property. These factors include the applicant’s income coming from means of salary or self-employment. Moreover, other factors such as the applicant’s credit score and background check also play a significant role in calculating the number of loans to be given. You need to submit the following documents in case of applying for such loans:
- Your Identity Proof may be in the form of a driving license, passport, aadhaar card, or voter ID.
- The annual statements help in determining whether your credit history involves regular and timely payments.
- The permanent address proof where you will be residing on a long-term basis.
- The latest financial statements for the self-employed category and the small and medium enterprises.
How to use Loan Against Property EMI Calculator?
You can easily calculate the EMI amount for your loan against Property online by following the steps listed below:
- Step 1: Choosing the amount of loan
The first step of the process is to choose the amount of loan you will be applying for availing loans against Property. The critical part of this step is to keep in mind that the property loan calculator can determine results upto only a certain amount of loan.
- Step 2: Determination of tenure
The second step is determining the period for which you will avail of the loan against the Property. You must only apply for such a loan when you can repay within the specified time frame.
- Step 3: Fixing the interest rate
The next step is the determination of the interest rate. Interest in loans against Property is comparatively lower in comparison to other loan types.
- Step 4: Calculating the EMI
This is the final step in determining the amount of EMI you will need to pay against the entered loan amount. As the amount appears on your screen, you can revise it as per your needs by altering the duration or the whole amount of the loan.
Loans against Property might not suit you initially, but it is a type of loan that is gaining popularity these days. The reason is that it is effortless and quick to apply for and acts as an immediate source of financial backup in times of significant crisis. And now, with the property loan calculator, the whole process of determination of EMI alongside the loan amount and tenure has made taking loans a simpler task.