A loan against property is sanctioned against an immovable asset such as commercial or residential property or a piece of land owned by the borrower. Lending institutions provide Loan Against Property approval for a specific percentage of the mortgaged property’s value.
For certain security purposes, lenders do not sanction a Mortgage Loan with LTV of 100%. You can avail a maximum of 90% of the property’s present market value from any lender.
Loan to Value is the amount of loan you can borrow compared to the current market value of that mortgage. LTV signifies riskiness of this loan.
The formula to calculate LTV is Mortgage amount/ Appraised value of the property.
To avail such high-value financing, you need to meet a few simple eligibility criteria including –
Self-employed individuals like businessmen, doctors, chartered accounts and others can also apply for the Property Loan.
As you fulfil all these eligibility criteria, check for the loan against property documents required and keep those papers ready and handy. It shall ensure fast processing of your loan application.
Property Loan rates of interest are comparatively cheaper than other types of loan, making the EMIs more manageable.
Bajaj Finserv also brings nominal fees and charges to help reduce the cost of loan. Meet the eligibility criteria and know how to apply online for loan to avail the most affordable Loan Against Property.