Home Equity Loan: How To Take Home Equity Loan | Advantages or Disadvantages of Home Equity Loan

By | August 1, 2022
Home Equity Loan If you want to take a loan, then it is better than a personal loan, which gives you a home equity loan at a low interest rate, you can use this money for property purchase or renovation.
At any point of life, you come across an emergency, you need money and you want to take a loan, this helps you in asset management in which you can take a loan at very low interest.
In case of any emergency, it is better to take a loan to buy or renew a property than a personal loan or any other loan.  can take.

What is Home Equity Loan?

This is called 2nd mortgage or it is also called home equity installment loan or second mortgage loan, the bank decides the amount of this loan according to the market value of the property.
If any type of home loan is going on on your property, then you can take Home Equity Loan only if your property will be in the same area, how much value is your property in that area, the bank gives 50 to 60 percent of that value.
By this you become very loan beneficial, this loan reduces the value of your home, if at any point of time you are not able to deposit the next installment, then the lenders of the bank give their dues on your property and in the coming days  I will auction your property.
Take this phone thoughtfully, you earn five-five ₹ 600000 annually at your home, only then apply for this phone because you already have a home loan running on your property, only then you can take Home Equity Loan.  Meaning is given.

Benefits of Home Equity Loan

Better interest rate according to your budget: You can change the interest rate according to your budget.
Unsecured loans have higher interest rates as they do not have collateral.
In secured loan, loan is available at low interest rate as it involves collateral.
Home loan interest rates are currently low.
Personal loans and credit cards may not provide as much cash as a home equity loan.
If the loan is used to buy a new property or renovate an existing house, it can be deducted at the time of filing tax.

Lost of Home Equity Loan

There are many risks associated with a home equity loan.  If there is a delay in payment, the lender can confiscate the property.  They can also auction it.
Home equity loan can also be used as a second mortgage.  For this, one has to first pay the closing charge of the mortgage and the fees associated with it, even if the loan is repaid prematurely, there is a prepayment penalty.

Eligibility of Home Equity Loan

  • Must be a native of India.
  • Your credit score should be more than 750.
  • Must be property or Nayagarh.
  • You can apply for home equity loan only if you have taken home loan on that property or new house.
  • Age should be between 18 to 70 years.
  • All these things and it has come to you then you will be eligible for home equity loan, on this you are given money at low interest rate, it is considered very good than personal loan or any other loan, in this according to the loan means your  Home Equity Loan is given as per Home Loan Against Property.

Apply Documents of Home Equity Loan

  • Home Loan Application Form
  • passport size photo
  • Proof of Identity: PAN Card, Passport, Aadhar Card, Voter ID and Driving License (Photocopy of any one)
  • Proof of Age: Aadhar Card, PAN Card, Passport, Birth Certificate, 10th Class Marksheet, Bank Passbook and Driving License (copy of any one)
  • Proof of Residence: Bank Passbook, Voter ID, Ration Card, Passport, Utility Bill (Telephone Bill, Electricity Bill, Water Bill, Gas Bill) and LIC Policy Slip (copy of any one)
  • Income proof (for employment) – Copy of Form 16, Fresh payment, IT Returns (ITR) for the last 3 years and Investment proof (if any)
  • Proof of Income (For Self Employed): Income Tax Return of last 3 years, Balance Sheet and Profit and Loss information of Company/ Firm, Business License and Proof of Business Address
  • Property related documents: NOC from the society/builder, detailed estimate of construction cost, registered sale agreement, allotment letter and building plan approval copy

Note – If you have already taken a home loan, then you do not need to give all these documents to the borrower or the bank, it gets done on the same document you would have given earlier.

How to apply Home Equity Loan

To apply for home equity loan, you have to go directly to the lender or the bank from where you have taken the home loan, you have to go there and talk that I have taken a home loan and I need some money so that I can get home.  I want to take equity loan, I have to tell all these things to your lender or bank, then your process will be done there then you can take Home Equity Loan.
There is no online procedure for this yet, to take this loan, you have to go to the bank and talk directly to it.

FAQs:- Home Equity Loan

Q1.  How to take Home Equity Loan?

Ans- Home equity loan is available only if you have taken any kind of home loan then you can apply for home equity loan.

Q2.  How much is the Home Equity Loan amount?

Ans- The amount of Home Equity Loan in whichever area you have a property and whatever the rate of your property in that area, 50 to 60 percent of the loan is given.

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