The best type of mortgage loan depends on the borrower’s needs and eligibility. There are the various types of mortgage loans in detail so that you can choose the best one which suits you
Another name of Mortgage loan is Loan against Property(LAP). If you require funds for meeting personal and business needs, you can avail a Loan against Property. A Loan against Property is a secured loan.
The interest rate on a LAP is lower in comparison to unsecured loans and tenure of the Loan against Property goes up to 15 years.
Both salaried and self-employed individuals can avail LAP. There are many banks and NBFCs offering a Loan against Property.
You can take a loan against property for both businesses as well as personal needs. If You are facing any problem in getting funds then you can visit our website and apply for funds.
Loan Against Property: LAP is for commercial and residential properties. The borrowers need to mortgage their property to get funds from lending institutions.
Home Loan: A borrower can take a home equity credit for purchasing land to build a house or to construct a house or to buy an under-construction property.
Business purpose: any person can take a loan against property for setting up a new business or expansion of existing business. The expansion can be in the form of buying new machinery, creating inventory for future demand or enhancing capital cycle by extending credit to the buyers or it are often establishment of latest set-up of plant for higher production. All such business purposes which put major impact on routine operations are eligible for LAP or loan against property.
Commercial Purchase: Commercial purchase loans are popularly taken by businessmen and entrepreneurs. They take such loans to buy commercial properties like a shop, office space, and commercial complex. Funds from this loan need to be wont to buy the property only.
Personal Emergency / needs: Life is uncertain, you never know when medical emergency may come. Loan against property assist you to meet such urgent requirements.
Similarly in Indian culture, marriage marks one of the most joyful and memorable events for anyone. While marriage spending vary among people supported their tastes and capacity but generally most weddings exceed the planned budget. A loan against property helps to overcome the need of a fund such needs.
Reverse Mortgage: Specially designed for retired individuals, a reverse mortgage works precisely the opposite of mortgage loans. The individual needs to keep their property as a mortgage with the bank or with the NBFC. The lender then pays them a steady amount of income every month like EMIs.
Property owners are still responsible for maintaining their property in well manner & pay the desired dues like periodic taxes and property insurance for safeguarding in exigency. Reverse mortgages allow senior citizens to raise funds through their property / home which they built while they were into working & use it as slow liquidation of illiquid asset through reverse mortgage and defer payment of the funds till they die, sell, or move away of the home. All the borrowed fund & interest thereon is recovered collectively at the final settlement.