How Does It Work?

The formalities of a loan against property are gone through, including the entire process of documentation, valuation, and fixing rate of interest and tenure of the mortgage loan. When the home is pledged, its monetary value is arrived at by the bank on the basis of the condition of the property, the demand for it, and legal ownership by means of an advocate’s report, as well as the valuation of the property through a report obtained from approved valuers in the lender’s panel as regards market value, circle rate value and distress sale value. The disbursements are made to the beneficiary by way of an annuity that can be a lump-sum amount or paid in regular monthly/quarterly intervals, after the bank has put aside a margin for interest costs and price fluctuations. The periodic payments are received by the borrower over a fixed loan tenure.