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Frequently Asked Questions

Get answers of all your queries related to Loan Against Property at Creditnation.

• Is it possible to apply jointly with a co-applicant?

  You can apply jointly with a co-applicant, but the co-applicant must belong to your family. While applying jointly, the loan amount can also be increased as per your requirements.

• What’s the procedure to repay my loan?

  The process involves the repayment of loan through EMI (Equated Monthly Installments). It can be paid through Post Dated Cheques (PDCs) or Electronic Clearance System (ECS) from any account approved by Reserve Bank of India.

• What duration do the Bank / NBFC take to authorize the loan?

  It usually takes between 7 to 10 days for the loan to be sanctioned once all the documents are submitted.

• Can I avail a loan against another property if I already have a home loan from a bank?

  Some of the banks or finance institutions may offer this facility to take a loan against any other property.

• Which factor does comprise the amount of loan?

  The actual amount of loan against property provided to you depends on factors including your income, repayment capacity and your past credit history. It also depends on the number of dependents, assets, liabilities, stability/ continuity of your employment/ business and the co-applicant’s income. You can take loan against property up to 70% of market value of your property.

• What refers to fixed rate loan against property?

  Fixed rate loan against property means the rate of interest on loan against property charged by the bank is same over the tenure of the loan. You should opt for a fixed rate only if you feel that the rate of interest prevailing in the market have touched rock bottom and the rates can only move upwards.

• What refers to floating rate loan against property?

  Floating rate loan against property means the rate of interest charged by the lender keeps changing with respect to the rates in the market over the tenure of the loan. Generally the rate charged is based on the cost of funds and the prevailing market rates. These rates vary periodically. Accordingly the tenure increases or decreases or alternatively the EMI increases or decreases based on whether the rates move upwards or downwards.

• Which needs does a loan against property fulfill?

  You can take a loan against property for any reason like getting your son or daughter married, expanding your business, taking a foreign vacation and sending your children to overseas for study. It is a secured multi-purpose loan with longer tenure and lesser rate of interest than a personal loan.

• Do any type of security required to take the loan?

  The property should be clear, marketable and free from any debts. There should not be any existing mortgage, loan or litigation on the property. In case your property qualifies the above mentioned criteria, the following documents are required to create a mortgage:
  a) Title deeds of the property.
  b) Other property related documents, if any.

• What is the eligibility criterion to get a loan against property?

  One can easily get a loan against property given the person has a minimum age of 21 years, employed or self-employed with a regular income and is owner of a property (both residential and Commercial).