New Okhla Industrial Development Authority, or Noida, has emerged as a flourishing real estate hub given its status as a satellite city of Delhi. Some of the top localities in this city are Sector 12, Sector 44, Sector 32, and Sector 16B.
Out of 10, these locations have liveability quotients of 9.8 or more. Hence, prices of residential units in this city are also on the higher side. Property owners seeking substantial funds can pledge their real estate assets to acquire a loan against property in Noida.
Benefits of acquiring a LAP in Noida
Illustrated below are the several benefits of acquiring a loan against property in Noida:
- Substantial loan amount
Applicants of this credit instrument need to pledge their property as collateral to acquire a loan against property. The lending institution then sanctions the loan amount depending on the property’s current market value. This amount is greater than that obtained from an unsecured credit instrument.
The loan-to-value (LTV) ratio varies from one lending institution to another. Usually, it depends on several factors like whether or not a property is rented, vacant, commercial, residential, or occupied. Before finalizing, individuals should conduct thorough research on multiple lenders regarding this LTV ratio.
- Get lower loan against property interest rates
A loan against property is a secured form of borrowing which implies a lesser risk for a lender as the latter can recover losses by making a legal claim on the pledged asset. Owing to this security, the lending institutions extend a nominal interest rate on this credit instrument. A lower interest rate reduces the interest outgo, thereby decreasing the total loan cost.
- Comes with an extended repayment tenor
The financial institutions provide an extended tenor to repay the acquired credits from a loan against property. This helps borrowers repay the availed sum via suitable monthly installments.
An extended loan tenor and low rate of interest make this credit instrument an affordable option.
Besides, individuals must be aware of the other vital aspects of this credit instrument.
Eligibility criteria of a loan against property
The eligibility parameters for a LAP are different for self-employed and salaried individuals. Individuals must ensure that they meet the below-mentioned loan against property eligibility criteria prior to applying:
For salaried individuals:
- Age must be between 23 and 62 years
- Should be employed with a minimum of 3 years of work experience
- Must be a residing citizen of India
For self-employed individuals:
- Age must be between 28 and 70 years
- Should be a residing citizen of India
- Must be a self-employed individual having a business vintage of at least 5 years and earning a steady income.
Potential loan applicants must note that the upper age limit is considered according to the maturity of a loan.
Documents required for a loan against property in Noida
The various documents required to acquire a loan against property in Noida include the following:
- Property documents – Title deed papers as required by the legal team, copies of the documents of the property that is to be pledged
- Proof of employment – Employer issued ID card, papers related to business ownership like partnership deed or registration certificate
- Proof of income – ITR, Form 60 or PAN card, bank account statements of last few months, recent salary slips, financial records like balance sheet and P/L statements
- Identity and address proof – Any other government approved photo identity or address proof
A loan against property comes with no end-use restrictions. This implies that borrowers can use the acquired credit to meet any desired financial obligation. There are several lending institutions that extend different types of loan against property to fulfill specific financial obligations. However, individuals must always ensure that they opt for a reputed financial institution as that will enable them to benefit from several offers.
This includes several pre-approved offers extended on secured and unsecured financial products. These offers help simplify and accelerate the lending process. Applicants can check their pre-approved offers by providing their names and contact numbers.
Thus, individuals must keep in mind the above-mentioned details related to a loan against property in Noida.