A secured loan uses the borrower’s home or business as security. The value of a borrower’s mortgaged property determines how much money one can get from a lender. A loan against property is a way to access the financial potential of one’s property without having to sell it.
If you’re looking to receive a sum against your home’s worth as a loan, Bangalore is the place to be. LAP is a fantastic deal for properties in the city and offers you unmatchable financial assistance. One can avail of up to 70 to 75% of the property’s market value as a LAP, as per the loan to value offered by lenders.
Bajaj Housing Finance Limited (BHFL) Application Process for Loan against Property
BHFL’s loan application process is quick and not too complicated. Take the following simple steps if you wish to apply for apply for a loan against property in Bangalore.
Here’s how you can apply online:
- Step 1: Begin by opening the application form
- Step 2: Complete BHFL’s application form completely and accurately with all the information needed (employment and loan type, name, mobile number, date of birth, PIN code, PAN Card, etc.)
- Step 3: During the next stage, a representative from the company will contact you and explain to you other details of the application process
- Step 4: You will need to submit all necessary documents in support of your application. Once all details and the property have been verified, you will receive your loan amount in your bank account in 72 hours.
You also apply with the lender offline by visiting any of its branches.
Loan Against Property Interest Rates
Knowing the interest rates in advance is crucial, so that you do not feel overwhelmed with the loan amount later. With Bajaj Housing Finance Limited, you can get a sizeable loan against property, with a tenor of up to 18 years. According to the lender’s Loan to Value (LTV) ratio and other factors, the borrower’s maximum loan amount is decided. LTV stands for the percentage of the property’s current market value that a lender is prepared to lend against. BHFL offers up to 70–75% of the property’s value through LAP.
Loan Against Property EMI Calculator
The Loan against Property EMI Calculator is an online tool that calculates monthly payments, interest, and the total cost of the loan. It helps you plan your repayments in advance and reduce the risk of defaulting by adjusting the loan amount and tenor to arrive at an EMI value that fits your repayment capacity. It takes into account three important factors:
Loan amount
This is the amount of money requested in a loan application. One can borrow as much as 75% of the market value of a home with BHFL.
Tenor of repayment
During this period, the loan must be paid in full. High-valued loans, such as loans secured by real estate, provide for greater repayment flexibility. Paying back the loan over up to 14-18 years* is an option.
Interest rate
For a Loan against Property calculator to operate, one must know the rate of interest. This rate is determined by a variety of criteria, including the borrower’s eligibility and the current market circumstances.
A Loan against Property EMI calculator displays the monthly payment amount, the total interest paid, and the overall cost of a mortgage based on the information entered in these three fields. An amortisation schedule is shown in certain sophisticated calculators as well.
Loan Against Property Eligibility Criteria
Bajaj Housing Finance’s loan against property qualifying requirements must be met by borrowers to be eligible for the loan. To get quick and hassle-free financing, it is important to meet all eligibility standards.
For professionals and salaried employees, here are our eligibility criteria:
• Indian nationality
• Age: between 28 and 60 years
• Employment: Three years as a respected employer with any reputable company.
For self-employed employees, here are our eligibility criteria:
• Indian nationality
• Age: between 25 and 70 years
• Employment: Five years of work experience.
Loan Against Property Tax Benefits
A lender generally agrees to offer a borrower a loan based on the collateral. The amount of the loan to be given is determined by the value of the property. In most cases, lenders will usually lend up to 75 percent of the property’s worth. The tax advantages of a loan against property are determined by the loan’s intended use.
Section 37 of the Act (1)
Section 37 (1) of the Income Tax Act allows you to deduct the interest you pay on loans secured by real estate from your taxes. This is detailed in Section 24. A loan against property tax advantages is available under Section 24 if the funds are utilised to finance the investment of a new house. Under this clause, the highest benefit you may receive is Rs.2 lakh.
Final Thoughts
If you are planning to take a loan against property, you must understand that the interest rate is the most crucial factor that will determine your EMIs. Therefore, opt for a lender who offering you the best LAP interest rate. At Bajaj Housing Finance customer, we offer LAP loans at interest rates starting as low as 8.75%, which is one of the lowest in the market. Further, with us, you can expect clear and upfront qualifying procedures and speedy approvals. So, if you need funds, apply with us today.