Are you looking for a loan? It is necessary to know about different types of loan options available from banks and non-banking financial companies. If you are looking for a loan against property, then it is necessary to know - What is loan against property? This is a secured loan where the property is used as collateral for the loan. For a borrower, loan against property interest rates is the greatest concern.
Along with this, there are few charges and fees that are charged against this loan. Before you avail the loan, it is important to know all about fees and charges.
Process Fees: Banks usually levy 1-2% of the loan amount as processing fees.
Foreclosure Charges: As per RBI circular, there is no requirement to pay any foreclosure charge when the loan is availed on the floating interest rate.
EMI Bounce Charges: When an individual fails to repay EMI on time, lender charge a certain amount per bounce EMI.
Interest Rate: When looking for a loan, it is necessary to look for the attractive loan against property interest rates from different lenders. The rate charged depends on loan tenor and borrowed amount.
Part-payment Charges: When the loan is borrowed at floating interest rates, there is no charge for making part-payment. NBFCs opt for a minimal charge for the part-prepay of the loan.
If you are not well aware of what is loan against property, you need to contact lenders to gather more details on the charges and fees levied in different situations.