Are you planning to step into the entrepreneurial world with your new venture? Does your child wish to go to a foreign institution to pursue higher education? Is a parent supposed to undergo an expensive medical procedure and you must pay for it? All of these things require you to have access to a substantial amount of money. A 4.5 Crore loan against property will give you enough money and power to take care of your and your family's needs. However, a 4.5 Crore loan against property involves a hefty sum. Therefore, lenders sanction such loans only after careful consideration and evaluation. The eligibility process for such a loan is stringent. In this article, we focus on everything you must know that will help you avail of a 4.5 Crore Loan Against Property.
4.5 Crore Loan Against Property Rates
Loans against property or property loans are the second cheapest loans after home loans. These loans are secured loans and involve collateral. They are virtually a no-risk deal for lenders. Thus, lenders charge very low-interest rates on these loans.
Currently, the loans against property interest rates vary between 9% and 18%. The final interest rate a borrower gets depends on several factors, such as the borrower's credit score, their income profile and age, the tenor chosen, and the value of the property pledged as collateral.
If you are planning to avail of a loan against property, try to get yourself the lowest interest rate possible. Loans against property are big-ticket, long-term loans and therefore, even a minor reduction in the final interest offered can lead to you saving a lot of money in the long run.
Once you know the interest rate you will be offered, use a loan against property EMI calculator to assess your EMIs. Knowing your EMIs in advance will help you manage your finances and plan your monthly budget in such a way that you always have enough money left for your 4.5 Crore loan against property EMIs at the end of each month. This is crucial since a missed EMI not only negatively impacts a borrower's credit score and their ability to avail of another loan on good terms and conditions in the future, but defaulting on EMI payments for a long period can also lead to a borrower losing their property.
4.5 Crore Loan Against Property Eligibility Criteria
4.5 Crore is a huge sum of money and therefore, know that your lender will be quite stringent about you meeting their loan against property eligibility criteria.
While eligibility criteria vary among lenders, here are some generic eligibility guidelines.
- You must be a resident of India to be eligible for a 4.5 Crore loan against property.
- If you are self-employed, your age should be between 25 and 70 years. If you are salaried, your age should be between 28 to 58 years, at the time of loan maturity.
- If salaried, you must be able to show 3 years of work experience and if you are self-employed, you must have 5 years of business vintage.
- Your CIBIL score must preferably be 750+.
- You must be the rightful owner of the property you wish to pledge as collateral.
- Tip: Use a loan against property eligibility calculator to assess the loan amount you are eligible for and if you want to secure a low-interest loan against property, apply for a loan amount slightly lower than the amount you are eligible for.
4.5 Crore Loan Against Property Tax Benefits
A 4.5 Crore loan against property comes with certain tax benefits. However, most borrowers are unaware of these benefits and therefore, never avail of them. Here is how you can claim a tax rebate on loans against property.
Under Section 24 (B)
Section 24(B) of the Income Tax Act states that if you use the money availed of under a loan against property to fund the purchase of a new residential home, you can claim deductions up to a total of INR 2 Lakh on payments made toward principal repayment.
Tax Deduction on Top-Up Loans
If you opt for a loan against property transfer, you will be given the option of availing of a top-up loan and if you use this top-up loan to construct, repair or renovate your home, you can claim tax deductions on your top-up loan. However, if the property was self-occupied while these renovations/repairs were underway, you will be able to claim only up to Rs.30,000. In case the property had been rented out, there is no upper limit to the deductions that can be availed of.
