Amounts of the loan

Amounts of the loan

Amounts of loan vary with banks or financial institutions. The lending institutions have a limit regarding the minimum amount as well as the maximum amount that they will give as a loan against property. This is to ensure that their internal conditions are met when the loan against property is being given. There can also be further distinctions within a category based upon the location of the property and the person taking the loan. This ensures that there is an element of overall control on the loan against property and that this is within the limits that are set.

Usually, the minimum amount of the loan against property that is given by various banks start at Rs 1 lakh. When it comes to the maximum amount side, there is a lower maximum limit as far as the rural areas are concerned because the figure here is likely to be restricted in the range of Rs 5 lakh-Rs 10 lakh. On the other hand, the maximum amount figure when it comes to other areas including urban areas is usually pegged at a limit of Rs 100 lakh or Rs 1 crore. Most loans including loans against property will be available within this range.

There are also conditions with respect to the repayment of the loan or the period for which the loan will be in existence. Most banks also keep an upper ceiling as far as the period for the repayment of the loan is concerned and due to this reason the repayment schedule for the borrower will also be impacted. In most cases, the banks will not go beyond 84 equated monthly instalments or a 7-year time period though in reality long-term personal loans in excess of 3-5 years is difficult because banks will not be willing to go this far as far as repayment of the loan is concerned.