The mortgage loan, more commonly known as the loan against property, is a type of
secured loan. In order to avail this loan, you will have to pledge your asset as
collateral to the lender. The funds for this loan are sanctioned against a fixed
asset like a plot of land, commercial property, or a house.
The lender holds on to your asset as collateral until you repay the total loan
amount. With a high-value property in hand, it is not mandatory for you to have a
guarantor for loan against property. However, in case you want to apply for the
mortgage loan with a guarantor, here is what you should keep in mind.
The guarantor for loan against property functions as the co-signer for your loan. To
be eligible, your guarantor has to be an Indian resident who is over 18 years of
age. You can ask any of your friends or relatives to be a guarantor for you,
provided they have a good financial standing.
This is because with a mortgage guarantor in tow, the lender will treat their
finances as security. This means, in instances where you fail to make payments on
time, the guarantor is responsible for making these payments.
The mortgage guarantor works as your aid, supporting your loan application for a loan
against property. However, considering that it is a secured offering, the need for a
guarantor only arises under certain cases. Firstly, if you are borrowing a loan that
exceeds a certain limit as per your lender’s policies then you will require a
Secondly, if your financial standing is not up to the mark, and you have a low credit
score, then applying for the loan with a guarantor may be required to access the
sanction. Thirdly, if you are approaching retirement then applying for the loan with
a guarantor will help you win your lender’s trust.
In financial parlance, there are two types of guarantors:
Generally, for a mortgage guarantor you will need a non-financial guarantor, unless
you are borrowing a very high sum that exceeds your property valuation and lender
policies. The non-financial guarantor for loan against property is someone who
certifies your credibility for the loan.
In any case, the financial guarantor will have to submit their financial documents
and take 100% responsibility of loan repayment in case you fail to do so. Thus, it
is better to take a very close relative, your spouse or children to be a financial
guarantor for loan against property as they will be prepared to share the burden of
your loan with you if the need arises without any hassle.
Irrespective of whether you apply for a loan against property with a guarantor or
not, you will have to qualify for it by meeting the loan against property
eligibility terms. They are as follows.
Once you are ready with the necessary documents to prove your eligibility, be sure to
apply for the Bajaj Housing Finance Loan Against Property. It features a sizable
sanction, attractive loan
against property interest rates and a lengthy tenor that ranges up to 18
years. For a hassle-free experience, all you have to do is apply online by filling the
easy form with basic details.
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Last update on 11-Mar-2021
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