29 March, 2015: Myloanbazar.com is one of the most trusted websites that provides assistance to loan seekers on different levels. From home loan to business loan, and from loan against property in Delhi to builder’s loan in Noida, you get full-fledged information about each and every element associated with any kind of loan process on their website. In their recent digital press interaction, they discussed the 8 most frequently asked questions about the loan against residential or commercial properties. Here’s the highlight of the interaction:What is loan against property? And how it differs from Home Loan?
The biggest difference between loan against property and home loan is of their purpose. While loan against property can be used of any random purpose, home loan is provided particularly for building or buying a home. In loan against property, you have to put your existing property as collateral.
Which one is better – personal loan or loan against property?
Obviously loan against property! You don’t have to declare the collateral in personal loan, but you get heavy interest rates to pay to the lender. Another advantage with loan against property is its processing fee is lower as compared to personal loan.
Are NRI’s eligible for loan against property?
A large number of banks do provide loan against property to salaried NRIs living in select countries and working with some of the reputed organizations.
Is it necessary to mention the purpose while applying for loan against property?
It is not necessary if your demands are not exceeding a particular limit. But you must have to submit a legal undertaking that you won’t be using the fund for any illegal or speculative purpose.
Does a commercial property qualify to be collateral for loan against property?
Of course it does. A borrower can put any kind of property be it commercial, residential or a plot as a collateral for loan against property.
What value of the property is provided as fund?
Around 60 to 80 percent of the market value of the property, laid as the collateral for loan against property. This value varies depending on the bank or lender you choose, you salary, job stability, savings, investments etc.
What about tax incentive on EMIs?
No, there is no provision for tax incentives in LAP (loan against property) unless you are businessman. If a businessman can prove that the fund was used to improve the business, he surely can claim the tax incentives on the entire interest amount paid.
What are the necessary documents to avail the loan facility?
Application form with photographs, identity and address proofs, bank statements, and processing fees cheque are commonly required. But if you are salaried employee you will also need to submit latest salary slip, and form 16. While in case of businessman, Proof of business existence & Education Qualifications, last 3 years Income Tax Return, last 3 years P&L , and Balance Sheet are required
With all this written, if you need to know more about the loans against property in Delhi, then you can visit their website and fill the query form. As they have the best customer support team in industry, you will be given all necessary assistance.