What is a Title Loan or Title Loan?

You know that when you take out home loans from the bank, the bank asks for collateral to repay the loan. Especially in the case of loans against property, banks only provide loans after th e collateral is guaranteed. It can be real estate, cars, jewellery, houses, bonds, etc. Real estate loans are also called mortgage loans. With a home loan, the property is held as collateral.

A real estate loan is a secured loan made for a residential or commercial property such as a house, apartment, office or business, or land. Properties serve as security. This property is for sale with title retention. In the event that the loan is not repaid, the bank can repay the loan by selling the mortgaged property. Depending on the value of the property, it is decided how high the loan amount will be as well as the loan against property interest rate.

Home loan processing fees

Many banks charge processing fees forhome loans, while some offer loans without processing fees. Most banks charge a processing fee of 1 to 1.5 percent for home loans. The processing fee is only paid once. A processing fee is charged by the bank when a loan is taken or a processing fee can also be paid from the loan amount.

Loans Against Property Costs

In the case of home improvement loans, banks charge various fees other than processing fees.

Property inspection fee

When the bank inspects your property, they also charge a certain fee for it. This also includes an inspection of your property. To cover the costs incurred, the bank charges a property inspection fee.

Legal opinion or appraisal fee

After viewing the property, the bank will conduct an examination of your property, which will determine that your property has no defects and will select a team of experts to assess the property's value which determines the value of the property. Banks also charge certain fees for this.

Insurance fee (optional)

Some banks require credit insurance to take out a loan. Credit insurance covers the loan amount in the absence of the applicant. If credit protection insurance is taken out with housing loans, a separate premium must be paid for it. Or combined with the loan itself.

How much credit can be taken against the property?

How much real estate credit is available depends on many factors. Each bank has its own limits for the minimum and maximum amount of credit. Some banks have a minimum limit of 10 lakhs. The maximum limit depends on the bank and the type and value of the property. Usually, real estate loans can be taken from 10 lakhs to 10 crores. You can use the home loans eligibility calculator, online for this purpose.