A loan against property, also known as a mortgage loan or property-backed loan, is a type of secured loan where you can borrow money by using your property (typically a residential or commercial property) as collateral. In other words, you offer your property as security to the lender in exchange for a loan. If you fail to repay the loan, the lender has the right to take possession of the property. Here are some key points about loan against property: Collateral: The property used as collateral must be legally owned by you. It can be residential or commercial property, and it should be free from any disputes or legal encumbrances. Loan Amount: The loan amount you can borrow depends on the market value of your property and its condition. Typically, you can get a loan amount ranging from 50% to 70% of the property's current market value. Interest Rates: Interest rates on loan against property tend to be lower compared to unsecured loans because the property serves as collateral. The interest rates can be fixed or variable, depending on the lender. Tenure: The loan tenure can vary from a few years to several decades, depending on the lender's terms and your repayment capacity. Longer tenures may result in lower EMI payments, but you'll pay more in interest over time. Eligibility: Lenders consider various factors, such as your income, credit history, and the property's condition, when determining your eligibility for a loan against property. Usage: The funds obtained from a loan against property can be used for various purposes, including business expansion, education, medical expenses, debt consolidation, or any other legitimate financial need. Repayment: You repay the loan in Equated Monthly Installments (EMIs) over the loan tenure. Defaulting on payments can lead to the lender taking possession of your property. Risk: The main risk associated with a loan against property is the possibility of losing your property if you're unable to make repayments. It's important to carefully consider your financial situation and have a repayment plan in place. Legal Process: When you take a loan against property, there will be a legal agreement in place, and the lender will have a mortgage or charge on your property. If you default on payments, the lender can initiate a legal process to take possession of the property. #tcm #cadfin #loan_Against_property