Q. What are the maximum and minimum amounts that you can avail as a loan from SBI against your property?
A. You can avail a property loan ranging from Rs. 5 lakh to Rs. 5 crore depending on the value of your property against which you want to avail the mortgage loan. The assessment of the property is done by SBI before the loan is disbursed.
Q. What is the repayments option available and how long can it be repaid?
A. You can repay the loan through electronic clearance system, more popularly known as ECS, by instructing State Bank of India to deduct monthly instalments from the given bank account. Alternatively, you may repay the loan amount through post-dated cheques by using various financing schemes.
Q. What type of property can be used as collateral to avail this loan?
A. Self-occupied residential property, commercial properties such as offices and shops and alternate property such as schools, hospitals, residential houses, industrial properties, and all such other properties can be used as collateral for availing a loan against property.
Q. How does bank determine who is eligible for availing a loan against property?
A. The following factors are considered to determine loan amount and eligibility for availing a loan:
Q. What is the disbursement and sanctioning process of property loan and how long does it take finally for a loan to get processed?
A. Property loan involves following disbursement and documentation process:
Q. What are the tax incentives for a loan against property?
A. There are no tax incentives for a loan against property for salaried individuals. Under the Indian Income Tax Act, 1961, tax exemptions are available under Chapter VI and section 24 for a home loan. However, the same exemptions are not available for a loan against property. The reason for this is that unlike a home loan that you take for building a house, a loan against property can be used for a variety of reasons.
Therefore, it is better to take a loan against property for business reasons. You can show that the loan has been used for capital expenses and show the repayment as business expenses.
Q. Should I take a loan against property or a personal loan from SBI to meet personal expenses?
A. A loan against property is a form of secured loan while a personal loan is an unsecured loan. State Bank of India has different terms and conditions for each loan. Experts suggest that a personal loan may be a good idea if you need a small amount that you can pay off within 2-3 years. Alternatively, a loan against property is what you need if you are looking for a substantial sum. Since mortgage loans come at a lower rate of interest, the EMIs are low, and so the outgo for the same sum of money for the same repayment period is considerably less for an SBI loan against property as compared to a home loan.
Home Extension Loan is useful when you want to add more space to your existing home. We make it easy for you to extend your existing residential property as per your requirements. You often renovate your home to suit your changing needs. This loan can be used to carry out repairs / improvements within your existing owned residential properties.
Personal loans are taken primarily for fulfilling your personal aspirations such as vacation, a perfect wedding, home renovation or a much desired gadget. In addition to being relatively easy to apply for, personal loans are unsecured loans which means that you don't need any collateral to take this loan. They are one of the simplest form of loans with customer-friendly repayment terms.
A sudden requirement of funds is an unavoidable circumstance of business or personal life. Whether a personal necessity (hospitalization, child's marriage) or a professional one (expanding business operations on a priority basis), every person requires immediate financial backing at key moments.
In this context, it is pertinent to consider an invaluable alternative source of finance known as Loan Against Property (LAP). This is a loan borrowed by placing one's owned property as collateral. The funding may be given by financial institutions after scrutinizing the validity of the said property and its current market value.
Running a business is not easy. You have to constantly think of ways and means to keep it going and growing. As a part of the growth plan, you require financing for expanding operations or to buy new equipment or inventory or simply increase the working capital. To help you with your financing needs we offer Business Loans that will help your business grow.
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