Facebook Twitter Instagram
    • Home
    • Get In Touch
    • Our Authors
    • News
    • Contact Us
    Facebook Twitter Instagram Pinterest Vimeo
    Elonview
    • Business
      1. Automotive
      2. Insurance
      3. Investment
      4. Law
      5. Loan
      6. View All

      Why Do You Require Seat Covers for Your Car?

      June 18, 2022

      A Detailed Guide to Obtain a Duplicate Bike Insurance Policy

      August 26, 2021

      Highly-rated car servicing centers in Singapore you should try

      May 5, 2021

      Major Causes of Semi Tractor Breakdowns

      October 7, 2020

      7 Must Have Coverage Inclusions in Your Motor Insurance Policy

      March 9, 2023

      Commonly Asked Questions About Term Insurance

      February 28, 2023

      Planning To Buy Ulip? Consider These Points before Buying

      January 17, 2021

      ULIP Taxation – Tax On ULIP Maturity

      April 1, 2023

      Why should you choose ULIPs as an Investment Option?

      September 21, 2021

      The Past, Present, and Future of Legal Intake and Triage

      May 11, 2021

      Why You Should Choose NBFCs Over Banks For Business Loan

      September 16, 2021

      How to Pre-Pay the Loan Against Property

      November 9, 2020

      Kavan Choksi Provides Insight into VIX and Stock Market Behavior

      July 13, 2023

      Beyond the Wires Exploring Wireless Network Services

      July 7, 2023

      The Share Market for Women

      June 24, 2023

      Enhancing Your Comfort with High-Quality Products for Heating Services in Santa Rosa

      June 13, 2023
    • Education
    • Health
    • Home Improvement
      • Gardening
      • Landscaping
      • Roofing
    • Lifestyle
      • Entertainment
      • Fashion
      • Food
    • Tech
    • Travel
    Subscribe
    Elonview
    Home»Business»Loan»How to Pre-Pay the Loan Against Property
    Loan

    How to Pre-Pay the Loan Against Property

    adminBy adminNovember 9, 2020Updated:November 9, 2020No Comments4 Mins Read
    Share Facebook Twitter Pinterest LinkedIn Tumblr Reddit Telegram Email
    Share
    Facebook Twitter LinkedIn Pinterest Email

    We often come across this popular term ‘Home Loan Against Property’ in the real estate and housing finance industry today. Loan against Property is a loan that you avail by pledging your real estate (commercial/residential Property) as collateral. The Loan Against Property is a secured loan. In this kind of loan, the Property owned by the person applying for the loan is kept as security. The value of your pledged Property determines the amount of loan you are likely to be sanctioned.

    Types of Property against which you can avail a loan

    You can avail loan against

    • Self-owned Residential Property
    • Self-owned and self-occupied Residential Property
    • Self-owned but rented Residential Property
    • Piece of land (Self-owned)
    • Self-owned commercial Property
    • Self-owned but rented commercial Property

    What does prepayment of Loan Against Property means?

    If one does not need it, it is a wise choice to repay a loan. After all, when you have cleared funds sitting in your bank account collecting only 4 percent interest, then paying interest on a loan costing over 10 percent doesn’t make sense.

    A prepayment is a repayment, before the official due date, of a mortgage or instalment bill. Advance payment is made either for the whole amount of the debt or a payment in part received in advance of the date on which the borrower is obliged to pay contractually.

    We should remember that if bought in an individual capacity, there are no prepayment penalties on Loan Against Property. But if it is acquired by a corporate company, in case of partial or complete prepayment of the loan, there will be prepayment fees imposed. Most banks do not charge any interest until the payment of the advance portion is made up to 25% of the principal outstanding in the financial year.

    What are the Advantages of Loan against property prepayment?

    Borrowers can part-prepay to put down the principal balance and save on future EMIs and the outgoing interest if you have a lump sum of money that is not equal to the remaining principal amount.

    E.g. If you opt for a credit sum of ₹ 5 lakh at an interest rate of 12 percent for four years tenure, your EMIs will come to ₹ 13,167 per month. If you part-prepay ₹ 100,000, your EMIs will come down to ₹ 10,534, helping you to save ₹ 2,663 per month on your EMIs.

    How to prepay your Loan Against Property?

    Loan against property prepayment is a quick and hassle-free process. You can make part-payments by either increasing the EMI balance per year by a certain percentage or paying one additional EMI in the same year. Generally, in a year, lenders would not mind taking an extra EMI. When you get a bonus, make sure that your part-prepaying loan uses a certain percentage of it. You can prepay your mortgage loan/loan against Property by two methods –

    Offline: Visit your lender’s branch from where you have availed the loan and ask the officials about the procedure to prepay your loan against Property.

    Online: Prepay your Loan Against Property using these steps –

    • Sign in your account with your credentials
    • Look for options such as ”Payments” and then press ”Online Payment”.
    • Reach out to the segment ”Part-prepayment”, and press on the tab ”Proceed” to begin the process of prepayment.
    • Enter the amount you want to prepay, and after checking all the details, click on the ”Pay Now” tab.
    • To continue with your order, you will be redirected to the ”Billdesk payment portal.” Make the payment after entering your card details.
    • After the transfer of payments, the amount will be reflected after a couple of hours in your loan account.

    Conclusion: After examining the points mentioned above, you may want to explore on which side of the fence you are sitting. You might be having excess liquidity or potentially sitting on surplus funds, so to repay a bit of your loan is a smart approach. Alternatively, to prevent reducing the effect of debt on your home purchase choice, you have paid a large portion of your loan. You, therefore, may wish to spend your surplus cash in other investment opportunities.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Previous ArticleMistakes that you should avoid during 3D printing
    Next Article Screening tests for people with diabetes
    admin

    Related Posts

    Loan

    Why You Should Choose NBFCs Over Banks For Business Loan

    September 16, 2021
    Add A Comment

    Leave A Reply Cancel Reply

    Archives
    • September 2023
    • July 2023
    • June 2023
    • May 2023
    • April 2023
    • March 2023
    • February 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    Archives
    • September 2023
    • July 2023
    • June 2023
    • May 2023
    • April 2023
    • March 2023
    • February 2023
    • December 2022
    • November 2022
    • October 2022
    • September 2022
    • August 2022
    • July 2022
    • June 2022
    • May 2022
    • April 2022
    • March 2022
    • February 2022
    • January 2022
    • December 2021
    • November 2021
    • October 2021
    • September 2021
    • August 2021
    • July 2021
    • June 2021
    • May 2021
    • April 2021
    • March 2021
    • February 2021
    • January 2021
    • December 2020
    • November 2020
    • October 2020
    • September 2020
    • August 2020
    • July 2020
    • June 2020
    Facebook Twitter Instagram Pinterest
    • Home
    • Get In Touch
    • Our Authors
    • News
    • Contact Us
    © 2023 ThemeSphere. Designed by ThemeSphere.

    Type above and press Enter to search. Press Esc to cancel.