The Indian financial market is combined & cluttered with banks & NBFC offering same or another product to the masses. The financial product is made as per requirement of buyers or users. Suppose you want the loan against property for X Y Z reason then you encounter with plethora of options such as private banks, government banks & NBFC.
These options usually confuses you that which to contact and what to ask. Now before making any decision you need to introspect your profile, background and property type to select the options. Let’s understand the aspects point wise:-
You need to understand that banks and NBFC gives loan basis to your profile and experience. They analyze your income potential from filled ITR and future prospects for the income. Suppose you are a salaried person who is earning 40000 P.M. in private entity then getting Loan against property from bank is a bit difficult due to less job security. On the other hand if you are employed with corporates such as Tata, Birla, Reliance, Maruti, Mahindra, then bank funding will be easier.
In loan against property, family income plays an important role in eligibility and faster sanction. Hence, if family income comes to 1.5 lacs or more than banks can easily sanction the case by taking co borrower. On the other hand if family comes to lower side then NBFC can take up the case and provide handsome amount.
Now as the name suggest of the product is loan against property hence the property type, value, positioning plays important role in eligibility decision. The loan against property is usually doing against residential and commercial properties for individual borrows, and it can also be done against industrial property as well in case borrower is a business entity. Banks usually does LAP loan value up to 60-70 % of market value of property and in case of NBFC it may go up to 80-140% of property value.
it is general phenomena that NBFC charges higher interest rate than banks and offer higher amount in terms of loan. Further, banks charges lower rate of interest and offer lower amount as compared to NBFC.
Any banks prefer the CIBIL score more than 700 as it indicates good CIBIL history however NBFC can also entertain cases up to 400+ if proper justification is in place. We advise you to keep your track healthy as it is very key in decision-making for any financial institution.
Hence, in conclusion we can say that it depends more on your profile and history rather than institution you select for finance. Herein we as Munafawala plays important role as we assess your profile and accordingly put up the proposal to respective bank & NBFC and gets you the best quote & rate of interest.