There are various types of loans that you can take for either purchasing a home or getting it renovated. But the biggest problem is choosing the correct one according to your requirement. Also, most people get confused easily between a home equity loan and mortgage loan against property in Mumbai, which creates further distress.
A loan against property in India can be availed by putting an asset as collateral. Whereas, a home equity loan is taking a second credit on the same property for dealing with additional requirements.
If you have already borrowed a home loan and are looking to gather additional funds, then a home equity loan against property in Mumbai can be a great alternative.
Below are all the details that you might need to know about a home equity loan against property eligibility.
How is the Loan Amount Calculated?
A home equity loan against property in Mumbai follows a simple calculation process so that it is easy for clients. It focuses on a few essential elements such as the actual value of the house and the total loan that you have already borrowed for this property. Here the loan against property interest rates is also dependent on the equity amount. The formula used to calculate the loan amount can be presented as:-
The actual/current Value of the Property - The total Amount of Loan already taken
To explain this better let's check out an example. Imagine that the total value of your property as of this period is Rs.10 lakh. The total loan amount that you have already borrowed on this property is Rs.7 lakh. So, the home equity loan against property in Mumbai amount will be Rs.10 lakh - Rs. 7 lakh = Rs.3 lakh. It means the amount that you can get a loan against is Rs. 3 lakh.
What are the Ways of getting Paid?
While taking a home equity loan against property in Mumbai, there are two fundamental ways that you can get paid. These have been designed to provide a bit of flexibility to the customer. In the initial phase of applying for the loan, you will be asked about the more suitable payment term. Here are the two methods that are used by banks and financing agencies for transferring funds.
1. Lump Sum Payment
If a borrower is looking to acquire all the funds at once, a lump sum payment term is considered. This way you will get the entire amount in one transaction.
2. Credit Line
On the other hand, if you want to borrow in instalments, then you can ask the financing firm to create a line of credit for you while taking a loan against property in Mumbai.
Additional Read: Factors for Low Interest Rate on Mortgages: LAP Tenure
What are the Benefits of This Loan?
The benefits of a home equity loan against property in Mumbai are many. But to give you a better idea here is a list of the top six ones.
● This loan is taken against your property which is why it is easier to get.
● You do not need to submit a lot of loan against property documents required.
● A home equity loan has lower interest rates in comparison to an unsecured loan.
● Home equity loans are also eligible for tax deductions.
● The amount of loan can even be significant since you have already put your property as collateral.
A home equity loan against property in Mumbai is secured, so the approval rate is very high.
A loan against property in India can be availed by putting an asset as collateral. Whereas, a home equity loan is taking a second credit on the same property for dealing with additional requirements.
If you have already borrowed a home loan and are looking to gather additional funds, then a home equity loan against property in Mumbai can be a great alternative.
Below are all the details that you might need to know about a home equity loan against property eligibility.
How is the Loan Amount Calculated?
A home equity loan against property in Mumbai follows a simple calculation process so that it is easy for clients. It focuses on a few essential elements such as the actual value of the house and the total loan that you have already borrowed for this property. Here the loan against property interest rates is also dependent on the equity amount. The formula used to calculate the loan amount can be presented as:-
The actual/current Value of the Property - The total Amount of Loan already taken
To explain this better let's check out an example. Imagine that the total value of your property as of this period is Rs.10 lakh. The total loan amount that you have already borrowed on this property is Rs.7 lakh. So, the home equity loan against property in Mumbai amount will be Rs.10 lakh - Rs. 7 lakh = Rs.3 lakh. It means the amount that you can get a loan against is Rs. 3 lakh.
What are the Ways of getting Paid?
While taking a home equity loan against property in Mumbai, there are two fundamental ways that you can get paid. These have been designed to provide a bit of flexibility to the customer. In the initial phase of applying for the loan, you will be asked about the more suitable payment term. Here are the two methods that are used by banks and financing agencies for transferring funds.
1. Lump Sum Payment
If a borrower is looking to acquire all the funds at once, a lump sum payment term is considered. This way you will get the entire amount in one transaction.
2. Credit Line
On the other hand, if you want to borrow in instalments, then you can ask the financing firm to create a line of credit for you while taking a loan against property in Mumbai.
Additional Read: Factors for Low Interest Rate on Mortgages: LAP Tenure
What are the Benefits of This Loan?
The benefits of a home equity loan against property in Mumbai are many. But to give you a better idea here is a list of the top six ones.
● This loan is taken against your property which is why it is easier to get.
● You do not need to submit a lot of loan against property documents required.
● A home equity loan has lower interest rates in comparison to an unsecured loan.
● Home equity loans are also eligible for tax deductions.
● The amount of loan can even be significant since you have already put your property as collateral.
A home equity loan against property in Mumbai is secured, so the approval rate is very high.
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