Loan Against Property
As can be understood from the name it self is a type of loan obtained by encumbering ones rights to the property,a mortgage occurs when a owner pledges his or her interest as security or collateral for a loan. As with other types of loans, mortgages have an interest rate and are scheduled to amortize over a set period of time, normally 5 to 15 years based on the sanction conditions set by the Lending Institution . All types of real property that can be a residential unit owned and occupied by the applicant,a commercial property used as a office of the applicant,a shop, industrial property used as a manufacturing unit or a plot of land, secured with a mortgage and bear an interest rate that is supposed to reflect the lender's risk.
The loan is usually given against 40 to 60 percent of the valuation of the property and depending on the nature of the property and on the income and risk profiling of the borrower. One of the primary benefits of LAP is that it is cheaper than personal loans.The borrower can take a loan against one’s self occupied residential or commercial property, to expand his business, plan a dream wedding, or fund his or her child’s education and much more.Though the end use of funds is not monitored post disbursement,the borrower needs to explain the deployment of loan funds and assure that the funds will not be used for illegal activities or for any speculative purpose during the underwriting process.
Mymoneymarkt in association with almost all the private banks,MNC banks and NBFC brings a wide range of options to suit your requirements.