Loan against property is simplest term is, you avail loan keeping your property as collateral. The property can be commercial or residential. This kind of lending is considered a secured loan by a lender or financial distributor.
Why is secured it? Because the person who owns the house gives legal permission on a pen-paper against their property to the financial institution. The amount which the lender sanctions depend on the market value of the property.
Where to get this type of Lending in India
- HDFC Bank
- Axis Bank
- State Bank of India
- Fullerton India
- Kotak Bank
- ICICI Bank
- Other Financial Institution.
Features for a Loan against Property
- Any salaries professional, self-employed, or business person can avail loan against properties. You can use this fund for business or personal reasons.
- The amount depends of the value of a property of location or other criteria. Ideally, the amount of sanctioned falls between Rupees 10 lakh up to 40 crores.
- The repayment tenure is a maximum of 15 years.
- Normally the amount sanctioned is 50-75% of the market value.