Tag: SBI

Owning a property is one of the most important assets in India. It can serve the wide spectrum of purposes in your difficult times. Generally, people take loan against property for residential, commercial or industrial properties. It is a secured loan process that is availed against the property mortgage with lower rate of interest and longer tenure. It is the type of loan that fulfills your needs in times of necessity.
Can You Apply?
If you are a self employed individual and want to start a new business with the requirement of huge amount. No matter whether you are an employed professional or an individual, you can easily avail this kind of loan. Without renting and selling you can opt for this option. You can keep your owned property on mortgage and can get the 40-70% of market value as loan. It is the most secured loan with lower rate of interest.
Basic Requisites While Applying for LAP
The property to be kept as mortgage should be in your name.
Different banks offer different packages such as Axis, HDFC, ICICI, SBI and many others.
Another imperative requisite is from the lenders side. It should have any other impediment.
LAP is applied for collateral property. Tenure for loan is 5- 15 years.
When Is The Best Time to Apply?
An individual who is having a property and is encountering financial crisis then he or she should avail LAP. However, Gold Loan is also a good option but due to sentiments attached with it people consider it as the last option. In that case Loan against Property is the best choice. Generally people avail LAP due to following reasons-
Expanding an existing business or to start up a new one.
For wedding of your children.
For urgent medical treatments.
For higher education of your ward.
Advantages of LAP
Value of the asset is created for a productive use.
Approval processing is quicker than home loan.
It also permits the partial pre-closure without levying the pre-payment penalties.
Refinance opportunity can be utilized to increase the loan amount. Moreover they can use the same property continuously.
Borrower does not lose the ownership of the property, however, in case the borrower does not pay EMIs and comes out as defaulter then the lender is entitle to acquire the property.

HDFC has become a leader among those banks which are taking well care of housing needs of the customers approaching them. This Housing Development Financial Corporation (HDFC) facilitates its clients in getting every kind of financial assistance which their customers want to have. It is setting new milestones every day in the market and leaving an immensely positive impact on its existing customers and others who would approach this bank.
According to recent news, HDFC Bank has sliced its lending rates by 0.1 per cent which is in effect from 30 March 2013. The base rate or the lowest rate of interest, of the Indias second largest private sector bank has become 9.6 per cent from the existing 9.7 per cent. At the same time, the standard prime lending rate (PLR) of the bank is expected to be reduced by a similar margin to 18.10 percent. The new rates have been effecting since March 30 2013. HDFC Bank has become the first bank to slice its interest rates after the RBI cut on lending rate by 0.25 percent on 19 March 2013. This HDFC housing loan arm has an experience of more than 30 years in the field of housing finance. One can easily judge that how old lender it is and how much efficient dealing will they provide. The overall benefit in the cost reduction “in HDFC home loans” has passed to the customers. It has resulted in the growth of confidence in the customers who want to build or buy new property or homes.
For housing loans, HDFC is the best option because its base rate of interest for home finance are even lower than the countrys largest public sector bank SBI. As told earlier, base rates of GDFC are reduced to 9.6 per cent in case of HDFC, and in case of SBI the lending rate is 9.7 per cent. This lender has been conferred with the award of Best Housing Loan Provider at outlook money awards 2012. This bank provides various loan repayment options like step up repayment facility, Tranche Based EMI, Flexible Loan installments Plan, accelerated repayment scheme and the last are telescopic repayment Option. Advisory and counseling services are also available for getting a new home or property. It has interest rates up to and including Rs. 30 lacs vary from 10.15 per cent to 10.65 per cent and for the loan amount above Rs. 30 lacs vary from 10.40 per cent to 10.90 per cent which are relatively lower as compared to other lenders in the market.