What are the end use of a Loan Against Property?

You can use a Loan Against Property to fulfil all your financial obligations.

For self-employed, you can use your loan for the following purposes: 

• Business expansion
• Operation usage
• Debt reconciliation
• Purchasing raw materials
• Making new investments and personal use

For a salaried individual, you can use your loan for the following purposes: 

• Mortgage buyout/Balance Transfer of existing loan
• Consolidation of debt
• Managing wedding expenses
• New investments
• Financing education

How is my eligibility for a Loan Against Property calculated?

The eligibility of a Loan Against Property is calculated by taking into the following parameters in account:

• Age
• Income
• Property value
• Existing obligations, if any
• Stability/Continuity of employment/Business
• Past borrowing track record

Do I need insurance for the property for which I want to avail a Loan Against Property?

Yes, your property needs to be insured for fire and other calamities during the tenor of your loan. You will have to provide proof of insurance to Baid Leasing and Finance Company Limited every year or whenever required.

What criteria does my property need to fulfil for me to avail a Loan Against Property?

You need to ensure that the title of the property is clear, free of any litigation, and should not have an existing mortgage or loan.

Can I avail a Loan Against Property for a property that is owned by my relatives and me?

Yes, you can. All the co-owners of the property will be considered as co-applicants of the loan.

What is the sanctioning and disbursement process of a Loan Against Property?

The process Loan Against Property disbursement is as follows:

• Submission of documents

You’ll have to submit a set of documents (see ‘Documents’ page for details) depending on your loan application documents you’ve handed in.

• Sanctioning of Loan

Your credit worthiness is calculated by Baid Leasing and Finance Company Limited, based on your income, age, employer or firm with whom you work, and CIBIL report. If you are self-employed then your nature of work, bank statements, and CIBIL report, and then plans out the maximum loan amount that Baid Leasing and Finance Company Limited can offer you. You are then issued a Loan Sanction Letter.

• Acceptance of Loan

If you agree with the terms and conditions of the loan, you will have to submit a signed duplicate copy of Loan Sanction Letter.

• Disbursement of Loan

The loan will be disbursed once all relevant papers of the property have been verified, all pertinent documents have been submitted, and the loan agreement has been executed.

How will my Equated Monthly Installment (EMI) be calculated?

Your EMI consists of two parts—paying back the principal amount you borrowed, plus the interest rates charged ‘on’ it. Three factors come into the equation—how much you borrowed, the rate of interest, and the loan tenure. There are ways to bring your EMI down: for one, it drops automatically if there is a decrease in interest rates, or if you pay back more than you need to (called a ‘partial prepayment’).

What are the types of properties for which I can avail a Loan Against Property?

You can avail a Loan Against Property for the following:

• Self-Occupied Residential
• Rented Residential / Commercial
• Vacant Residential / Commercial
• Shared Property

You can not avail a Loan Against Property for the following:

• Plot
• Property outside city/municipality limit
• Property with tenants for more than 5 years (with no renewed rent agreement)
• Property with structural flaws that requires substantial repairs
• Property constructed on agricultural land/farm land
• Illegal properties
• Property already mortgaged with other banks
• Residential property used for commercial purposes without approval from competent authority
• Under construction property except NRP transaction
• Industrial property
• Schools or hostels
• Hotel

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