Fixed or floating- What's your pick?

stock photo Summary: Loan against property rates can be fixed or floating and every type has its own sets of advantages. This article focuses on how to avail a better deal on the loan against home. Loan against property connotes to that loan given or disbursed against the mortgage of an immovable property. The loan amount disbursed is a certain percentage of market value of the property of the borrower. Generally, the sanctioned loan amount ranges from 40% to 70% of the market value and has an upper threshold limit of 2 to 3 Lakhs. The payable interest rate on these loans much cheaper than the personal loan or unsecured loan plans. The lower interest rate is because of the fact that the lender has a security in the form of the housing mortgage compared to a personal loan that is given without any security. The repayment tenure for loan against property is much larger than personal loan. Generally, the maximum repayment tenure is 10 years. The loan amount can be used for any purpose and you are not required to disclose the motive of the loan to the lending authority at the time of loan application. The criteria for loan approval are same as that of a home loan. Part prepayment as well as full prepayment options are available. These loans are available against both residential and commercial property. read more