How to Track Personal Loan Application Status Online?
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For a large percentage of the population, taking a loan against their property is often the only option to finance a major expense. Also known as a Mortgage Loan, Loan Against Property (LAP) is made available by a lender when the borrower mortgages a real estate piece owned by him/her.
These loans are preferred by lenders, since they are backed up by a piece of real estate as a collateral for the loan, as well as the borrower who has to pay an interest rate that is lower than the amount that goes with a personal loan. Further, even though the loan is taken against a property, it remains under the ownership of the borrower who can continue to make use of it.
LAP can come in handy when one requires a bigger loan amount since real estate can fetch up to about 60% of its market value as loan amount. Thus, a real estate valued at Rs 50 lakh may provide for a loan of up to Rs 30 lakh, given the fulfilment of certain conditions.
Complete and undisputed filing of Income Tax Returns are necessary for a borrower while applying for a mortgage loan. Alike a steady flow of income, this is crucial in an application being processed successfully. Typically, a lender asks for three-year ITRs but this may vary in certain cases.
Failing to provide this documentation could lead to rejection of an application even if a potential borrower is able to prove a regular flow of income, is young, and has complete property documents.
Even though a loan against property is much easier to take, it’s good to always remember the worst-case scenario – losing the property for defaulting on payments. It is always better to look before you leap instead of regretting a decision later.
The act of paying out money for any kind of transaction is known as disbursement. From a lending perspective this usual implies the transfer of the loan amount to the borrower. It may cover paying to operate a business, dividend payments, cash outflow etc. So if disbursements are more than revenues, then cash flow of an entity is negative, and may indicate possible insolvency.
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