Getting a loan against property is perhaps the wisest decision you can make to quickly raise funds. The money you raise through this means can be used for both personal as well as commercial purposes. This flexibility is what makes this type of loan such an enticing prospect for hundreds and thousands of people who wish to raise funds in bulk immediately.
Such loans might be enough to meet whatever financial requirement you may have. That said, it would be in your best interest to know a few key terminologies related to such methods of financing if you seek to venture into this territory.
And who better to guide you with these terms than Findestination – the leading loan provider in Pune?
So without much further ado, let’s get started.
1. Loan to Value
Also known as LTV, Loan to Value involves the amount you can get against your property. This amount is calculated by considering the borrowed amount and dividing it by the property’s fair market value at the time.
2. Principal Loan Amount
This is the main loan amount that one borrows against their property. The borrower is required to pay the full principal loan amount back along with the applicable interest during the time of repayment. This repayment can be done in monthly EMIs.
3. Equitable Monthly Installment
EMI is the monthly amount that a borrower must pay to the lender during the course of an agreed-upon tenure. This amount is calculated by taking the tenure, interest rate, and principal loan amount into consideration.
Mortgage involves the act of holding certain assets collateral in exchange for receiving the loan amount. Many people in the country associate Mortgage with home loans. With Mortgage, a person pledges the asset they own in exchange for the funds they seek. The lender will retain the deeds to the assets pledged until the loan has been cleared. The borrower, on the other hand, can use the assets pledged until the loan is cleared but he or she won’t be allowed to mortgage it again.
5. Property Title
Property Title refers to the person that legally owns the property that has been leveraged to get access to funds. This title is given to the lender when someone takes a loan against the concerned property. The lender retains the title until the borrowed amount is paid off.
6. Fixed and Floating Interest Rates
A Fixed interest rate refers to the interest amount that remains constant throughout the loan tenure. Floating interest rate, on the other hand, refers to a flexible interest rate that can change based on factors like market fluctuations, inflation, etc.
7. Foreclosure Charges
Foreclosure comes into effect when a borrower decides to repay their loan before the scheduled date. A lender might levy foreclosure charges for clearing their loans before the deadline.
If you seek loans in Pune, then we suggest you waste no time reaching out to the experts at Findestination for clear guidance.
Call us now to learn more.