Loan against property belongs to that loan category where the borrower gives a guarantee by using his immovable property.The loan amount is usually around 40% to 60% ovalue of the property.
Loan against property can be availed against both commercial property as well as residential property for either business activities or personal activities.
Loan amount will be determined based on various factor. It is decided on the basis of age, income, educational qualification, partner/spouse’s income, savings etc.
Amount of loan cannot exceed 85% of the property cost.
The tenure of loan is maximium 15years but it may vary from bank to bank.
Processing fee vary from bank to bank.
A loan given by a bank, mortgage company or other financial institution for the purchase of a primary or investment residence.
In order to understand how a business loan works, imagine borrowing a capital to fund a startup or pay for an existing business’s expansion without pledging anything against the borrowed amount.
Project finance is the financing of long-term infrastructure, industrial projects and public services based upon a non-recourse or limited recourse financial structure, in which project debt and equity used to finance the project are paid back from the cash flow generated by the project.
Overdraft means the act of withdrawing money from the bank account. It is a facility provided by the bank to its customers who withdraws money more than the amount he holds in his account.