Interest rate of interest remains unchanged for the entire term of the loan. The benefit of a fixed-rate mortgage is that the homeowner will not have to contend with varying loan payment amounts that fluctuate with interest rate movements
LAP is a loan given against the security of your existing property. Like a home loan, LAP is secured against asset pledged by the borrower, as collateral. The collateral can be a residential/commercial property. Some lenders also offer loan against mortgaged land. Lender can claim custody of the collateral or the property in case of deficiency in payment.
LOAN REPAYMENT TENURE
Most lenders offer loans for terms between 10 and 15 years. Banks / NBFCs also take into account borrowers age on loan maturity and also the number of years remaining in service/profession.
You can borrow up to 70% of the market value of the same property. While for residential property, it is generally 60% of the value and in case of commercial property is 50%.
RATE OF INTEREST
Most lenders give loan at similar rates but differ in processing, legal and administrative fees, hidden costs of acquisition, availability of yearly, monthly and daily reducing outstanding balance methods, time taken for approval, dissimilar pre-payment penalties.
So, to make that all-important educated decision really tough to be taken.
- You are an Indian Resident
- You are at least 25 years of age when the loan is sanctioned and age should not be more than 60 years if you are a salaried employee and not more than 65 years if a self-employed professional/ non-professional, at the time of loan maturity.
- You are a self-employed professional with a regular source of income ranging from around Rs. 30 Lakh to Rs. 60 Lakh