Posts from Loan Against Property

HDFC Loan Against Property

on September 19th, 2011 in Loan Against Property tagged

“I need a large sum of money on an immediate basis. How do I make the arrangements in a short period of time?”

One may not be able to plan a lot of things in life. This problem bugs almost everybody these days. The need for money may be for various reasons. Higher education, expanding business, marriage and medical treatment are a few example scenarios for which you might need money. There are a lot of ways you can arrange money, one being taking a loan. But before you go ahead, have you noticed the potential your property holds to fulfill your desire. HDFC loan against property is a very smart choice always available to you in such times of urgency.

The meaning of loan against property is very well described in its name itself. It is a loan that is extended against the mortgage of your property. This type of loan falls under the category of secured loans as the borrower provides a guarantee by using his property as assurance. It can be taken against either a residential or commercial property. This way you can take advantage of your property without letting it on rent or selling it. The property should be fully constructed and should be a freehold having clear and marketable title.

Anyone can get a loan against property provided the person is a minimum age of 21 years. The person can either be salaried or self-employed, but should be the owner of the property. The amount of loan depends on factors including your current income and repayment capacity. The documentation process is also easy along with various options available for repayment. The loan can be repaid in easy EMIs through post dated cheques, online or direct debit from bank account. The loan can be processed within 7 working days once the required documents have been submitted.

HDFC’s existing home loan customers can avail as much as 60% of the total value of their property as loan. On the other hand, new customers can avail up to 50% of the total value of the property as loan. Interest rate of 11.25% is offered for loans up to Rs. 1 crore and 11% for loans above Rs. 1 crore. It is available for tenure of 1 year to 20 years against both residential and non residential properties. If you wish to prepay the loan, HDFC charges a minimal prepayment charge of 4% on the principal outstanding.

This is a better option in comparison with a personal loan. It is true that you can easily get a personal loan to fulfill any urgent need of finance. But, loan against property not only offers you a cheaper rate of interest, but the tenure of the loan is also much longer. This feature assists an individual to take a larger amount of loan as compared to a personal loan. Thus, the repayment capacity of the individual is increased and this has a direct impact on the cash flow.

Therefore, if at any moment you feel that you were not able to plan well in advance or do not have funds available when needed, do not lose hope or forget the opportunity your very own property can bring in for you. HDFC loan against property can easily erase any worries that you may have for arranging finances. Call +91 9716147450 now or fill the loan application form to the right so we may get back to you.