Mortgage Loan on Joint Property

The property with the joint ownership of all the family members means we can say it’s a HUF (Hindu undivided family). One person of the family is appointed as a “Karta” and there is no limit to the membership of family members once the family members get married but he should be the son only. If the daughter gets married than she will not be considered as the member of HUF further. Generally HUF gets some income tax benefits on their yearly income and HUF gets special benefits from government and for getting the special benefits, in the same year two ITR(Income tax returns) needs to be filled by family. One is for individual name and another Income tax return with the name of HUF, so this is the clear picture of joint family low of Hindu religion.

Now we see the overall banks stands on the joint ownership property anywhere in India from HUF ownership. HUF is created due to some large undivided family structure and in this structure some minor family members can also be there and as per the Indian company law “No contact can be done with the minor members of the family in any manners”. If this happens, then it would be invalid and the transaction of property shall be cancelled. This is the only reason why banks and other financial institutes are not providing the mortgage loan, loan against property or any kinds of secured property loans against existing property which includes the ownership of HUF with presence of minor members of the family.

Sometimes, we see some kind of self employed customers who belongs from HUF and the owner of the firm is the “Karta” of the HUF in this situation. In such cases, if business stability is not a concern area which means company has enough experience approximating more than five years and have sufficient amount of ITR and supportive ABB is last one year bank statement with good vintage of existing loans in current balance sheets and P&L(Profit and Loss Statement) account of the company from last three years, some other parameters like the nature of business of the company also matters for availing unsecured loan from any of banks and financial company like NBFC and the loan amount can be availed up to 30 to 40 lacs as per the calculation from last three years ITRs.

HUF Karta can avail home loan also but the only points to be followed is, the family must not have currently any of minor members out of the HUF family, and some other point where member is director in any of Pvt Ltd entity, he is eligible to become the co-applicant, if the company is coming as applicant for any secure or unsecure loan processing. Loan against Property or any of Mortgage Loan on joint property is very difficult product due to some legal aspects which can come to HUF law, so the borrower have only few choices for getting loans. One is unsecure Personal Loan and other is Business Loan but he can avail the secured mortgage only if than he does not have any minor person in his family and it should be on board.

Source: http://www.sooperarticles.com/business-articles/financial-management-articles/mortgage-loan-joint-property-1292796.html?

Loan against property: Guaranteed Way of Arranging Funds

Person can get a loan against property only if a person provides collateral to the bank in the form of commercial property, house or flat. Person can use this amount for any personal purpose such as going for a vacation, for paying bills, house extension, initiating new business, education, house improvement, business expansion, marriage expenses, and purchase of goods, debt consolidation and many more. A loan against property means a loan given or disbursed against the credit of the property. Person can avail loan against property as a certain percentage of the property market value which is around 40% to 60%.

The various features of loan against property are:

 

• A person can use this loan for any purpose or need whether it is professional or personal.
• The Person can get a loan against property on fully constructed property.
• Person can get a loan at the cheapest interest rates. Banks provide two types of interest rates such as fixed rates and floating interest rates.
• Person can get an amount of loan up to 60 to 65% of the market value. It depends upon the person property or flat.
• The client can pay off the loan amount through EMI or monthly installments.
• Person has to pay off the amount of loan range from 10 to 15 years.
• Loan against property is a secured loan.
• The process of Loan against Property is easy, convenient and hassle free.
• The banks charge 13-18% of the rate of interest on the loan against property amount, which totally depends on the amount of loan and person’s profile.
• Person has to get minimum of Rs.10 Lakhs for getting loan against property.
• A person can get a loan up to Rs.10cr.

The tenure provided by the bank is 10 years. The loan amount needs to be repaying in the form of EMIs. In any case, person want to avail loan more than 25 lakh, person need to mention the reason for getting a loan. The loan amount person can get against property can range from 10 Lakhs to 3 crore. This amount is depending upon the property person pledge. The amount of the loan also varies from bank to bank. The age limit of person lies between 21 to 60 years.

Source: http://loan-against-property-guaranteed-way.blogspot.in/2012/10/loan-against-property-guaranteed-way-of.html

Home Loan or Loan against Property? Picking the better investment

A home loan is a loan that is advanced to you by a lender to assist you in buying a house. This amount needs to be repaid to your lender in monthly instalments.

If you apply for loan against property, you will receive a loan against the mortgage of your property. This means that your property is your security in the event that you are unable to pay back the loan. This loan is usually between 40% to 60% of your property’s value, and can sometimes go up to 70%. If you visit the website, you can take a Property Loan with benefits like EMI-free months and Zero-Penalty Foreclosures.

What’s great About These Loans?
Home loan:

1. Your capital goes up: Property prices in India have been skyrocketing over the past decade. Buying a home is the best investment you can make to tackle inflation, and ensure that you have a large reserve of funds in the future.
2. Easy interest rates: Home loan interest rate is much lower than most loans – anywhere between 9.50% to 13%. This makes repaying a home loan cheap and easy on your finances. To apply for home loan at lowest interest rate.
3. Renting vs. Buying: Buying a house is expensive, but can prove to be profitable in the long run. Buying a house means paying EMIs every month, but with the surge in property values, you’ll have a valuable asset by the end of your loan tenure. If you rent a house, the increasing real estate prices will result in an increase in your monthly rental payments.

Home loans are also quickly processed and disbursed, so you won’t have to deal with delays when you apply for this type of loan. You can apply online for home loan or you can transfer your existing Home Loan!

Loan against Property:

1. It’s your property: When you apply for loan against property, you still maintain ownership of your property. This means that you continue to live in your own home and make monthly loan payments to retain your ownership.

You can sell it if you want to: If you’re unable to make monthly payments or feel like you won’t be able to in the future, you could sell your property. Since the loan is only a percentage of your property’s value, you can repay the loan and be left with surplus funds.

Plot loan interest rates:

The tenure for a property loan can be anywhere between 1 – 15 years. The average rate of interest lies between 12% and 17%. The combination of these factors ensures that property loans are easily repayable.

You can make more money:

If you’re a businessman who has taken a plot loan in India, you can expand your business using your property. With rising property prices, you can refinance your property at a higher value, which will grant you an increase in your loan amount. Using the additional funds, you can work towards business expansion.

Both types of loans have benefits that make them ideal for different situations. If you’re looking to buy a house, availing a home loan would be the best option because it’s the reason that home loans are provided. If you’re in need of quick funds, taking a loan against property is a good option. You can pledge your property as collateral and use the funds for any activity you desire; the lender cannot question what you spend the money on.

It’s not hard to decide which of these loans to choose, because both these loans are utilised for completely different purposes.

Source: http://loanagainstpropertyinindia.blogspot.com/2016/01/home-loan-or-loan-against-property.html