Getting a loan by mortgaging a property, is one of the most common ways to raise a lump sum of money whenever necessary at an affordable interest rate. While borrowing, one should ensure that you are not borrowing way beyond your income.
According to the Central Bank (RBI) regulations, complete financing or zero down payment schemes are not made permitted. It is made important by RBI that the home buyer has a stake in the property that he is willing to purchase.
Before advancing a home loan to a borrower for the intended purposes, a lender will demand the borrower deposit a certain sum of money called the margin money.
Real estate makes for a good investment and is generally expected to appreciate at value and price in the long run. However, one should understand that it is not the physical form of a dwelling that sets the prices soaring in the market.
A loan against property is a secured loan which is obtained by keeping the property (residential/commercial) as collateral with the lender of the loan amount. Many people are of the opinion of investing into real estate, as it is considered to be a safer option as compared to other investments.