For what purpose you can avail loan against property?  ( 15 Oct 2015)

You can avail loan against property against commercial and residential property.

What is a Loan against Property? How is it different from a Home Loan?  ( 15 Oct 2015)

The two loans are poles apart. A Loan against Property is a multi-purpose loan. The end-use could be funding your elder child’s marriage, your younger child’s education abroad, expanding your business. The collateral (secured asset) for this loan is a property which is already in existence or a plot of land. A Home Loan on the other hand is taken only for the purpose of buying a residential property.

Can a self-employed person avail of a Loan against Property?  ( 15 Oct 2015)

Yes. Both salaried and self-employed applicants can obtain a Loan Against Property.

Do you need to specify the purpose for which you avail a Loan against Property?  ( 15 Oct 2015)

Most banks don’t require you to specify the purpose for which you take a Loan against Property, upto a particular limit. Above that, they might require you to provide an undertaking that the loan is not for a speculative / illegal purpose.

What is the quantum of the loan I can get?  ( 15 Oct 2015)

For a Loan against Property, around 60-80% of the market value of the property provided as collateral depending upon the bank you opt for. Factors like your income, savings, investments, job stability, age, dependents, spouse’s financial health, other loans in your name also play a crucial role in determining the loan amount.