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DO YOU WANT TO KNOW MORE ABOUT LOAN AGAINST PROPERTY?
When a bank or IDBI Finance provides a loan to the borrower against his property is called a loan against property. It is like a personal loan where the loan amount can be utilized by the borrower to fulfill his personal or business need but there are differences between the personal loan and loan against property for private financers in Delhi, which are as follows:
Rate of Interest: Personal loan is an unsecured loan so a bank or NBFC charges a high rate of interest on a personal loan. Personal loan rate of interest offered by a bank or NBFC ranges from 10% p.a. to 30% p.a. depending upon the profile of the customer and his creditworthiness. A loan against property is a secured loan that is secured against the property of the borrower so the lender charges a comparatively low rate of interest. Loan against property rate of interest offered by a bank or NBFC ranging from 8.50% p.a. to 18% p.a. depends upon the profile of the customer and his creditworthiness.
Loan Tenure: Personal loan provided by the bank or NBFC for a shorter period i.e. 1 year to 5 years. Bank or NBFC offers a longer period for repayment of loan against property. Loan tenure for a loan against property at the lowest interest rate is in between 3 years to 15 years. Even 20 years is also offered by some banks or NBFCs.
Loan Amount: As the personal loan is unsecured so the bank or NBFC imposed a capping on the loan amount. Bank or NBFC provides up to Rs. 50 lacs under a personal loan.As the loan against property is secured so there is no capping on the loan amount by the bank or NBFC. A borrower can avail Rs. 10 lacs to Rs. 100 crores against his property subject to fulfillment of loan eligibility criteria.
EMI: EMI calculation depends upon three factors i.e. (i) Loan Amount, (ii) Loan Tenure, and (iii) Rate of Interest. Due to lower rates of interest and longer repayment periods, EMI on a loan against property is lower than a personal loan. Loan against Property in Delhi NCR is provided by IDBI Finance .