Best Mortgage Home Loan Rates in Chennai
Turn your dream home into reality by purchasing or refinancing your property. Let Vijay Capitals compare the best home loan interest rates that are suited to your needs to help you make a better decision
Mortgage Loan in Chennai
A loan against property(LAP) is a cheaper loan option as compared to other loan options in the market, whether it is a personal loan or a loan against security. Come to think of it, even on the face of it-you see your house as an investment. So, first-take a loan to buy a house and then take a loan against it a few years later to meet your other needs.
A mortgage Loan in Chennai (LAP) is also known as ‘Home Equity Loans’ and is basically a kind of loan against the security of one’s property. LAP is designed to meet the financial needs of a person who already owns a house, which is free from any encumbrance (i.e. it is not given as security for any purpose)
In other words, it actually connotes – a loan given or disbursed against the mortgage of property. One can now take a loan against one’s self-occupied residential or commercial property, to expand his business, plan a dream wedding, or fund one’s child’s education, and much more. However, one needs to give a declaration stating that these funds will not be used to carry out any illegal activities or for any speculative purpose. The loan is given as a certain percentage of the property’s market value (usually around 40 percent- 65 percent). But the threshold amount is generally defined by most lending institutions. Usually, banks and other HFCs extend a loan against property (Mortgage Loan) as a security, for up to 50 percent of the market value of the property. However, the extent of the loan is also subject to your eligibility as per income norms which also are stricter than home loan norms.
What are the advantages of a Loan against Property in chennai?
- It works out to be much cheaper than a personal loan, which is usually issued at interest rates in the range of 12-25 per cent. This is generally on a daily or a monthly reducing balance method. The Mortgage Loan rate at which LAP is issued is in the 12.50 per cent-15.75 per cent range. The lower rate is partly because the lending entity has a security in the form of the housing mortgage vis-a-vis a personal loan that is given without any security
- The tenure for Mortgage Loan in Chennai (LAP) is longer than that for a personal loan. LAP is given for tenure of 1-15 years. Since the rate of interest is lower, many a times, equated monthly installments of LAP turn out to be cheaper than those under personal loans. But the tenure has to be lower than the residual age of the property as approved by the valuer of the Bank
- The criteria for Mortgage Loan in Chennai LAP are the same as those for any home loan. Part prepayment as well as full prepayment of LAP is also allowed by most lending institutions; many lending institutions do no levy extra charges on prepayment
- The eligibility requirements of the Bank for a customer to qualify for this product are similar to those of a normal home loan. Mortgage Loan in Chennai (LAP) is either given as an overdraft facility (which means it is for 1 year and renewed every year) or for as a normal loan
How is interest charged on Loan against Property in chennai?
- Some financial institutions make Mortgage Loan in Chennai (LAP) available only under the floating rate. Fixed rate loans are off limits. Borrowers need to enquire before finalising a LAP from lending institutions
- It is normally available for residential properties only, but can be available for commercial property also.
Mortgage Loan or Loan Against Property (LAP) In Chennai Eligibility Criteria
Salaried Individuals:
Eligibility criteria for salaried employees are broadly along the following lines
- Minimum age of applicant: 21 years
- Maximum age of applicant at the time of loan maturity: 60 years
- Minimum Net Monthly Income: Rs. 12,000 p.m
Self-employed Individuals:
Broad eligibility criteria for self-employed employees
- Minimum age of applicant: 21 years
- Maximum age of applicant at the time of loan maturity: 65 years
- Minimum Annual Income: Rs. 1,50,000 p.a
Loan Amount
The loan is given as a certain percentage of the property’s market value (usually around 40 per cent-60 percent). But the threshold amount to is generally defined by most lending institutions like say, minimum Rs. 25000 and maximum Rs. 1.5 crore.
Tenure of work experience
If you are salaried/self-employed, banks take into account the number of years you have remained in service/profession.
Repayment Capacity
- The lender evaluates your repayment capacity based on your income, savings, and debt obligations, other than household expenses.
- Based on this information the lender decides on the amount of loan that you are eligible, after considering your previous debts and obligations.
Frequently Asked Questions
Property is generally among the first assets people acquire. But, compared to other assets like, say, stocks, it’s relatively illiquid, and poses a bit of a problem when you need quick cash.
There are distinct differences between a LAP and a personal loan. Read on to find out more.
| Loan Against Property | Personal Loan |
|---|---|
| The individual takes car loan by taking the house property | An individual can take a personal loan for personal usage without any security or guarantor |
| One of the Cheapest retail loans after home loans | Higher interest rate compared to LAP |
| Maximum loan eligibility is determined primarily by the value of the property and income | Maximum loan eligibility is determined primarily by the value of the individual income |
| Maximum loan tenure for LLP is up to 15 years (180 months) | Maximum loan tenure for LLP is up to 5 years (60 months) |
| Secured loan | unSecured loan |
Description of Charges:
- Processing fee
- Prepayment fee
- Charges for changing from fixed to floating rate of interest
- Charges for changing from floating to fixed rate of interest
Get Bajaj Finserv Lending Loan Against Property In Chennai
