Loan against residential property is a loan given by banks or financial institutions using a residential property as collateral. Such loans are usually given for a period of 5 to 15 years and the loan amount is determined by the value of the property. Mortgage bazaars can help you compare loan against residential property offers from different banks and apply for the one that best suits your needs. Some of the benefits of loan against residential property are:

• Lower interest rates: The interest rate on a loan against residential property is usually lower than that of personal loans and credit cards.
• No income proof required: For self-employed individuals, it is often difficult to produce income documents. However, with a loan against residential property, you do not need to submit any income proof.
• Flexible tenure: loan against residential property offers flexible repayment tenure ranging from 5 to 15 years.
• Top-up loan facility: Most banks offer a top-up loan facility on an existing loan against residential property. This can be useful in case you need additional funds at a later stage.
• Tax benefit: Interest paid on loan against residential property is allowed as a deduction from your total income under section 24(b) of the Income Tax Act.

However, there are also some challenges that you should be aware of before taking out a loan against residential property:

• High margin: Banks typically charge a high margin on loan against residential property, which can increase the overall cost of the loan.
• Prepayment charges: If you want to prepay your loan against residential property during the tenure, you may have to pay prepayment charges.
• Processing fees: Most banks charge a processing fee of 1% to 2% of the loan amount, which can add to the overall cost of the loan.

Mortgage bazaars can help you find the best loan against residential property deal that suits your needs and budget. We will help you compare offers from different banks and apply for the one that best suits your requirements.

Loan against commercial property is a Loan given by the bank using the commercial property as collateral. The Loan to value ratio is lower as compared to other Loan products and the interest rate is also lower. The Loan tenure can be up to 15 years. Most importantly, it helps you in releasing the equity from your property without selling it. You can use this Loan amount for business expansion, meeting working capital requirements, etc. Some of the benefits of taking Loan against commercial property are:

• No personal liability: In case of default on Loan repayment, only the property is at risk and not your personal assets.
• ax benefits: Interest paid on Loan against commercial property is allowed as deduction from income from business or profession as per Income Tax Act.
• High Loan amount: As commercial properties are usually valued higher than residential properties, you can avail Loan against commercial property up to 75% of the property value.
• Longer tenure: You can enjoy longer tenure up to 20 years for Loan against commercial property as compared to other types of Loan products such as home Loan, personal Loan, etc. which have shorter tenure ranging from 1 to 5 years.

Despite these advantages, there are certain challenges which you should keep in mind before taking Loan against commercial property such as:

• Higher processing fee: The processing fee for Loan against commercial property is higher as compared to other types of Loan products.
• Strict eligibility criteria: The eligibility criteria for taking Loan against commercial property are stricter as compared to other types of Loans.
• Property located in prime areas: Banks usually finance only those properties which are located in prime areas or cities. This limits your chances of availing Loan against commercial property if your property is located in tier 2 or tier 3 cities.

Mortgage bazaars can help you overcome these challenges and get you the best deal on Loan against commercial property by providing multiple offers from different banks without any cost or obligation. With our end-to-end support, we will also help you with document collection and submission so that you can focus on what's important - your business!