I think taking a loan is a good way to finance goals that need a substantial sum. A property is an asset that you can use in case of an emergency. You can use your self-occupied commercial or residential property to borrow a loan. This property is used as collateral and the loan is given according to the value of the property and your income to pay back the borrowed money. I hope now you know the answer to your query on “is using property as collateral for a loan possible.”
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You can avail a
loan against property
for a fully constructed commercial or residential property. A self-employed or salaried individual can apply for any purpose other than speculative purposes. Lenders generally give loans up to 60 percent of the mortgaged property’s total market value. However, there are some lenders that disburse up to 90 percent of the property value, depending on your eligibility and the property. You can also apply with a co-applicant if you require a higher amount against your property. In this case, the lender will consider the income of every co-applicant along with the property value.
Generally, a person can take a loan against property till the age of retirement or for a maximum of 15 years, whichever is lower. It’s essential to determine the tenure, maximum and minimum, before you borrow the loan.
Now you’ll be able to answer if someone comes around asking “can I use property as collateral for a loan”
If You Want to Rent Out Your Property to Generate Some Income, then Just Post an Ad on NoBroker!
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This is all on “is using property as collateral for loan possible”
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Can I use property as collateral for a loan?
Fawad
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3 Year
2022-06-01T18:33:53+00:00 2022-06-01T19:14:20+00:00Comment
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