Home Loan

A Home Loan is an amount of money that an individual borrows from a bank or money lending company at a certain rate of interest to be paid with the EMI every month. The property is taken as a security by the money lending company for the Home Loan.

Loan Against Property

In the real estate and housing finance market today, we regularly come across the term “Home Loan Against Property”. Loan against property is nothing but a loan which you avail by keeping your commercial/residential property as a collateral.

Project Finance

Project financing is a loan structure that relies primarily on the project’s cash flow for repayment, with the project’s assets, rights and interests held as secondary collateral. Project finance is especially attractive to the sector because companies can fund major projects.

Home Loan

Home loan is the amount that a person takes from the bank or lending company, and returns every month with an EMI at a fixed rate of interest. In return, the lending company holds the property in the form of security. The property can be either commercial or of an individual by nature. If the borrower is unable to pay the debt, then the lender has all the legal right that he can recover his dues by selling the property of the borrower.

Types of Home Loans

Home Purchase Loan

This is the loan that one takes for purchasing a home.

Home Improvement Loan

This loan covers expenditure related to repairs of your home or even renovation.

Home Construction Loan

This loan comes in handy when you are building a new house.

Land Purchase Loan

Someone wishing to buy a plot of land for constructing his/her own house can avail this loan.

Home Extension Loan

Suppose you plan to add another room, garage, bathroom or kitchen to your home. This is the loan that you should apply for and this also comes in handy if you are planning to have another floor.

Joint Home Loan

These are loans taken by two people or even more. For instance, spouses can apply for joint home loans.

Home Loan Balance Transfer

You can use this mechanism to switch your outstanding loan amount to a different lender with better terms and conditions and lower interest.

Loan against Property

A loan against property is a loan, given against the mortgage of property. This loan amount given on mortgaged property is a certain percentage of the market value of that property, which is roughly 40 percent to 60 percent.

Loan against property belongs to the secured loan category where the borrower gives a guarantee by using his property as security

Loan against Property can be taken for following purposes

  • Expanding your business.
  • Getting your son/daughter married.
  • Sending your son/daughter for higher studies abroad.
  • Funding your dream vacation.
  • Funding for medical treatments.

What kind of properties can be the mortgage for a loan?

You can normally take a loan against your self-occupied or rented residential property. This could be a house or even a piece of land.

What are the eligibility criteria to get a loan against property?

  • Your income, savings, debt obligations
  • Cost/value of the property mortgaged
  • Your repayment track record for other loans, credit cards, etc.