Need a property loan? Check Rs 15 lakh LAP EMI and interest rate
A home loan is a secured loan given to a person who owns a property in their name. Whenever you need funds, you can pledge your residential or commercial property to use as collateral.
It helps you borrow money using your property as collateral and repay through EMI. One of the main advantages of this loan is that you can keep your property and simultaneously raise funds for all your most important financial needs.
It is easy to apply for and obtain this loan if your property is legal and meets all the terms and conditions of the lending institution. You can keep your property documents ready along with your identity details to apply for the loan. One can either go to the nearest bank branch or apply online for this loan. Often, banks offer lucrative offers to their existing customers with a good track record or a good salary account. However, you should compare the terms and conditions, services, interest rates and additional charges applicable to different circumstances before applying for the loan.
Also, it makes sense to choose an institution that takes less time to process your loan because if you need the money right away, you can’t get stuck with a lender that delays processing your loan. Before applying for a property loan, you should also remember your property value, loan requirements, EMI amount, interest rates, length of occupancy, and additional fees.
The interest rate and tenure are the two most important factors. If the term is longer, your interest will increase on the borrowed loan, but if you keep the term short, your EMI amount will increase. So you have to find a balance and take a call taking into account your ability to repay. Often, the duration of this loan varies between 12 and 240 months, but this can vary from one institution to another, according to Bankbazaar.
You can borrow a property loan to solve your monetary problems related to business expansion, your child’s higher education, marriage, medical emergency, etc. As it is a secured loan, the banks are less worried and the processing of the loan is quick if your property papers are in order as per the lender’s requirement.
This loan helps you keep your property. In an emergency, you don’t need to look for a property buyer, just go to the nearest bank and apply for a loan. Other benefits of this loan are higher loan amount, lower interest rate and flexible tenure. When it comes to an amount, it depends on the value of your property. You can borrow Rs 10 lakh to Rs 1 crore and more depending on your financial needs and the current market value of your property.
In addition, you should also find out about processing fees, pre-closing fees, repayment terms and other conditions before signing a loan agreement with your lender. The table below will help you compare the interest rates of more than 20 banks and the EMIs for the loan of Rs 15 lakh for 10 years.
Interest Rate and EMI on Loan Against Property of Rs 15 Lakh for 10 Year Term
Compiled by BankBazaar.com
Note: Interest rates on loans against residential property (LAP) for all listed public and private banks (BSE) taken into account for the compilation of data (excluding small financial banks); Banks whose data is not available on their website are not taken into account. Data collected from respective bank’s website as of June 28, 2022. Banks are listed in ascending order based on interest rate, i.e. the bank offering the lowest interest rate on the LAP is placed at the top and the highest at the bottom. The lowest interest rate offered by banks on the LAP is shown in the table (regardless of the amount and term of the loan). The EMI is calculated on the basis of the interest rate mentioned in the table for the Rs 15 Lac loan with a tenor of 10 years (processing fees and the like are assumed to be zero for the calculation of the EMI); The interest mentioned in the table is indicative and may vary depending on the general conditions of the bank.