Banks sanction property loans against mortgage of an immovable property.
Property loan is an all purpose loan, i.e., the loan can be obtained for any legitimate purpose whatsoever like meeting expenses of a Marriage ceremony, a sudden medical emergency, business requirements, buying a property or any other asset etc. The rate of interest, terms and conditions and charges for the loan vary from bank to bank.
A regular source of income to service the loan and ownership of an immovable property which can be mortgaged to the bank as security for the loan.
The amount of loan is linked to your repayment capacity and the market value of the property mortgaged to the bank. Banks generally ask for 50-60% as margin on the value of property to be mortgaged.
Varies from Bank to bank
60 to 120 months
It is suggested that before finalising your deal for property or mortgage loan with a bank, you make detailed enquiries from various banks regarding the rate of interest, processing charges, prepayment charges and other charges. An informed decision will result in substantial saving in the cost of the loan.