Loan Against Property in India

Loan Against Property

A Loan against property is a secured mode of credit, which allows individuals to leverage the equity of their property to fund an array of expenses. Even though you are using the property as collateral, you are still free to use it like before.

The property here can be land, a house, or any commercial premises. This mode of financing can be a great alternative to unsecured loans, and the borrower-friendly features help you to make the most of the funds.

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Features Of Loans Against Property

With LAP, you can enjoy the following features –

  1. Restriction Free Usage

Since there is no restriction on the usage of the funds, you can address a range of financial requirements that you may have. You can use it to fund children’s higher education, meet medical expenses, invest it in various business expenses, and many more.

  1. High Value

The loan against property value is typically high and depends on the market value of the mortgaged property. The loan amount ranges from 40% - 75% of the total valuation of the property.

It means, if your mortgaged property has a market value of Rs. 1 crore, you can get up to 75 lakh as a loan.

  1. Longer Loan Tenure

Loan against property services offers a repayment tenure of up to 20 years. It lowers the EMI amount and helps with repayments. Moreover, individuals can also pay-off their loan early if they can.

  1. Competitive Rate Of Interest

Being a secure mode of credit, a loan against property India come with competitive rates of interest compared to other financing options. Therefore, loan repayments become more affordable.

  1. Keeping The Property

Even if you have mortgaged your property to avail funds, this financing method lets you use the property like before. Once, you finish the repayment; the lender will hand over the property papers to you.

  1. Easy Eligibility

Since quick loan against property India is secured in nature, the eligibility requirements are lenient and easy to meet. Here are some notable ones –

  • Age: 18-70 years
  • Credit Score: 650 and above
  • Monthly income: Depends on the respective lender
  • Employment type: Both salaried and self-employed

A point to note here is that these criteria alter with lenders, and certain mortgage loan companies may have specific requirements that you need to meet to get funds from them. Check this when searching for ‘loan against property lender near me’.

Nevertheless, fulfilling the eligibility requirements is not enough; one needs to submit adequate documents to complete this process.

Documents Required To Apply For Mortgage Loans

To get a loan against property, you need to submit the following set of documents –

  • KYC documents
  • Income proof such as salary slips, bank account statements, ITR documents, etc.
  • Property documents, i.e. registration papers, property tax documents, property insurance papers, etc.

Self-employed individuals need to submit their business documents such as ownership details, Balance Sheet or Profit and Loss statement if required.

Being a secured mode of credit, instant mortgage loan India allows you to have a hassle-free borrowing experience. However, the loan approval process takes time, and more often than not, it becomes a hurdle.

Typically, a loan against property application takes 4 – 5 working days to process as it includes multiple verification processes. Therefore, if you are facing a financial exigency, it may not be the best financing option for you.

Gold Loans – An Alternative

In this regard, gold loans can be a potent solution for you. Similar to the mortgage loan in India, a gold loan is also secured in nature, and it offers similar benefits. Therefore, you have the freedom to use the funds, enjoy better interest rates, low costs of borrowing, etc.

On the other hand, gold loans share some differences with a loan against land India, and they are –

  1. Compared to a loan against property, the loan approval time for a gold loan is usually a couple of hours. Hence, one can address any financial emergency with it.
  2. The loan tenure for gold loans are shorter, typically, 6 months to 1 year. Thus, you can quickly become debt-free. Also, the repayment flexibility is greater in the case of a gold loan.

Therefore, it is easy to conclude that a gold loan is a more accessible mode of financing when compared against a loan against property. However, it is vital to select a trustworthy lender to have a satisfying borrowing experience.

In this search, Rupeek is a name that you must consider. With our industry-first features like doorstep services, paired with other lucrative benefits, borrowing becomes a hassle-free affair with Rupeek.

Features And Benefits Of Rupeek’s Gold Loan

Rupeek is one of the leading names in the gold loan segments in India, and here are the features that make us the preferred option when it comes to gold loans.

  1. Highest Per Gram Rate

Enjoy the highest per gram rate against your pledged gold, which can go up to 80% of its total value. You can now avail funds as high as Rs. 1.5 crores against your jewellery. Check the latest rate on the gold loan calculator page on our website. Also, you can quickly calculate the loan amount within seconds.

  1. Hassle-free Repayment

We levy an interest rate on the gold loan that starts from as low as 0.49%. Hence, the interest payment is now more affordable with Rupeek. To make loan repayments more accessible, we have introduced different payment schemes. You can choose from the standard EMI system, or you can opt to pay as per your suitability.

  1. Convenient Balance Transfer Facility

Furthermore, we also offer a suitable loan transfer facility that allows you to save up to Rs.12,377 per lakh on repayments. The process is straightforward. Once you initiate the loan transfer by sharing your current pledge card, our representatives will guide you through the remaining process.

  1. Overdraft Facility

To make borrowing hassle-free, we have introduced an overdraft facility called Rupeek Quick. Our existing customers can pledge more gold and gain access to this credit line facility. It will allow them to withdraw funds as per their will, whenever they want. What’s more, customers can save on interest payment considerably as we levy it only on the used sum.

  1. Minimal Eligibility And Documentation

Our eligibility requirements are minimal; anyone above the age of 18 with gold ornaments can avail funds from us. Also, only a handful of documents are required for a gold loan, making it even easier for applicants to get funding.

  1. Online Application And Doorstep Services

At Rupeek, we offer a hassle-free online application process. Once you initiate the process by submitting your mobile number, our executive will contact you for further processing. After that, our loan manager will visit your house for document verification and gold jewellery evaluation. Once they are satisfied, you will receive the money.

Furthermore, we are the only gold loan provider in India that offers doorstep services. Our strong presence in more than 500 locations around the country allows us to respond to your queries within 30 minutes.

Loan against property is a borrower-friendly financing plan. It offers favourable features, competitive interest rate, high loan value, which helps individuals to meet a wide range of financial commitments. Nevertheless, the loan approval process and long loan tenure make it ill-fitted for the financial requirements of certain individuals. In that case, they can opt for a gold loan as an alternative. With a lender like Rupeek, they can enjoy the benefits of a mortgage loan, and get funds at their doorstep within 60 minutes.

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Frequently asked questions

  1. What are the security measures followed by Rupeek?

We take the utmost precautions to ensure the safety of pledged gold items. The gold ornaments are kept in bank vaults, ideally at a distance of 5 km from your house. You can monitor in real-time whether the items pledged are reaching their destination as well through the Rupeek app.

  1. Is there any part payment facility offered by Rupeek?

Yes, Rupeek offers a part payment facility for its gold loans. However, the payment amount must be more than the monthly instalments, but lower than the full loan amount.

  1. Can I get a loan against a vacant land?

Several financial institutions entertain a vacant land as collateral for a loan against property. Check this factor before applying. 

  1. Can I make online payments for my gold loan?

Yes, you can make online payments via Rupeek’s online payment portal. Once you log in to this portal, you can check your account summary and make necessary repayments.

  1. Does Rupeek accept every gold item?

No, Rupeek only accepts gold jewellery. One shall also note that the quality of gold ornaments one plans to pledge shall not be lower than 18 karats.

  1. How to get a rebate on gold loans from Rupeek?

You can get a rebate on gold loans from Rupeek with regular repayments. The rebate amount you earn increases with an increase in payment frequency.

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