Muthoot Finance Loan Against Property
Muthoot Finance Loan Against Property: Muthoot Finance is a non-banking financial company (NBFC) that offers various financial services, including loan against property. Loan against property (LAP) is a type of secured loan that allows you to borrow money by keeping your property as collateral.
1. Loan Amount
The loan amount that you can get from Muthoot Finance for LAP can range from Rs. 1 lakh to Rs. 10 crores, depending on the value of the property and the borrower’s repayment capacity. The loan amount can be used for various purposes, such as funding business needs, education, medical expenses, home renovation, debt consolidation, etc.
2. Loan Tenure
The loan tenure for LAP from Muthoot Finance can be up to 15 years. The borrower can choose the loan tenure as per their repayment capacity and financial goals. Longer loan tenure can result in lower EMI payments, but it also means that you will end up paying more interest over the loan term.
3. Interest Rates
The interest rates for LAP from Muthoot Finance are competitive and are based on various factors such as the loan amount, tenure, borrower’s credit score, etc. The interest rates can range from 11% to 16% per annum. Muthoot Finance also offers customized interest rates for different loan amounts and repayment tenures.
4. Eligibility Criteria
To be eligible for LAP from Muthoot Finance, you need to meet the following eligibility criteria:
- You should be a salaried or self-employed individual.
- You should be a resident of India.
- You should be at least 21 years old and not more than 65 years old at the time of loan maturity.
- You should have a good credit score and repayment history.
5. Documentation
To apply for LAP from Muthoot Finance, you need to submit the following documents:
- Property documents such as sale deed, title deed, tax receipts, etc.
- Identity proof such as Aadhaar card, PAN card, etc.
- Address proof such as utility bills, passport, etc.
- Income proof such as salary slips, bank statements, income tax returns, etc.
6. Processing Fee
Muthoot Finance charges a processing fee for LAP, which can range from 1% to 2% of the loan amount. The processing fee is non-refundable and is deducted from the loan amount disbursed.
7. Prepayment Charges
Muthoot Finance may charge a prepayment penalty if the borrower chooses to prepay the loan before the completion of the loan tenure. The prepayment charges can vary based on the loan amount, tenure, and other factors. It is advisable to check the prepayment charges before availing of the loan.
FAQs
Can a loan be taken against the property?
Yes, a loan can be taken against the property, which is known as a loan against property (LAP).
Which bank is best for a property loan?
Some popular banks for property loans in India include SBI, HDFC, ICICI Bank, Axis Bank, and Kotak Mahindra Bank, among others.
How much loan is given against property?
The loan amount given against property depends on the value of the property and the borrower’s repayment capacity. Generally, lenders offer loan amounts ranging from Rs. 1 lakh to Rs. 10 crores for loan against property.
How to get a loan against property easily?
To get a loan against property easily, check your eligibility, research different lenders, check your property’s value, and submit all required documents accurately and on time.
Final Words:
In conclusion, Muthoot Finance offers loan against property (LAP) to salaried and self-employed individuals, with loan amounts ranging from Rs. 1 lakh to Rs. 10 crores and repayment tenures up to 15 years. The interest rates are competitive and based on various factors such as loan amount, tenure, and credit score.
The eligibility criteria include a good credit score and repayment history, and the required documents include property documents, identity proof, address proof, and income proof. Muthoot Finance charges a processing fee for LAP, and prepayment charges may apply if the borrower chooses to prepay the loan before the completion of the loan tenure. Before availing of the LAP, it is important to consider your financial goals and repayment capacity and read the terms and conditions carefully.
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