In the real estate and housing finance market today, we regularly come across the term “Home Loan Against Property” it is also known as secured loan.
Which means Loan against property is nothing but a loan which you avail by keeping your commercial/residential property as a collateral.
A loan against property is a convenient option to finance all high-end expenditures for business or personal purposes.There are also many services which are now provided by the banks so that people can repay their loan easily. The amount which we get totally depends on the property on which we want loan to be sanctioned. Before the sanction of loan the bank would verify look into income details, savings, employment track and other aspects of the person who wants to take a loan, before coming to disbursement.
The property or collateral would be evaluated on the current market value and correspondingly the loan amount would be calculated. Getting a loan against property becomes much more streamlined and swift if you have all the basic documents in place.
The only drawback with loan against property is that the bank may take possession of property if the individual fails to repay the loan amount, however,its very important to have a planned approach so one can manage things and can avoid the circumstances for possession of properties.