Home equity loans helps the customer to mortgage his existing property to the bank for taking loan for some other purpose. Banks assess the current market value of the property to give loans to customers. Customers can use the money so acquired for marriage, education, medical purpose. Residential/Non-residential properties are considered for approval of loan. They are only given to legal title holders, also the land should be free from any kind of dispute.
Banks offer around 60-65% of the actual value of the property as loan. The Loan amount can go up to 10-15 lakhs for commercial and residential properties. Repayment is done through Equated Monthly Installments or EMI. The repayment period can range from 10-15 years depending on the bank's policies.
Rate of interest can both be fixed as well as fluctuating, according to the requirement of the customer. Rate of interest charged is also fixed according to the prevailing market conditions.
An individual/company/professional can apply for home equity loan in different home loan corporations/ banks by filling the application form. These days companies provide online forms for customer convenience. There is certain information that one must furnish in order to qualify to approval of home loan.
*Terms and conditions may vary from bank to bank.