What is Loan Against Property (LAP)?
The UAE has grown in popularity over the years as a destination for expatriates, most notably in Dubai. To keep up with this trend, the United Arab Emirates loan industry has developed into a well-established market, offering home loans against property to local and foreign lenders as well as UAE citizens. If you are searching for a loan against property in Dubai, then we at Taskmaster are here for you to deal with this process effectively without any hassle.
A loan against property also known as a mortgage loan is approved against an asset that remains with the lender until the loan is repaid. This property can be residential, industrial, or commercial. Property loans give you access to a higher loan at a lower rate of interest. Lenders typically approve a mortgage loan between 50 percent and 70 percent of the market value of the property, which you can easily repay in an EMIs for up to twenty years.
Benefits of Getting a Loan Against Property in Dubai
- Flexible End-Use – like personal loans, a loan against property in Dubai can be used for business and personal purposes other than any speculative use.
- High Quantum of Loan – A mortgage loan is protected against a high-value asset, which provides you access to a higher loan amount, helping you complete your high-end expenses easily.
- Low-Interest Rate – The rate of interest on a secured loan is lower compared to the rate of interest on an unsecured loan. This makes a loan against property a better and cheaper alternative to personal loans.
- Flexible Tenure – The period of loan against property in Dubai generally increases to 20 years, giving you the advantage of lower EMIs and more flexibility of repayment.
- Balance Transfer Facility – A mortgage loan also comes with the balance transfer facility, allowing you to refinance your existing mortgage loan to any other lender at a lower rate of interest or better loan terms.
These all benefits will delight you when you get a loan against property in Dubai.
Eligibility Criteria to get a loan against property in Dubai
- The credit score you have: one of the biggest factors of eligibility for loan acquisition is your credit score. However, several people think that a credit score is crucial only for an unsecured loan. Although, this is not true. Several loan providers consider your credit score before deciding to provide a secure loan. Your credit score tells lenders your loan payment history. Therefore, with a high credit score, you easily become eligible for a loan. Similarly, a bad credit score can cause complications when trying to get a loan against property in Dubai.
- The source of income you have: Your property acts as collateral, but most banks and other lenders evaluate your income source. This is to ensure that you have sufficient stability for repaying your loan in the form of monthly installments. In certain cases, not having essential income can cancel the loan, even if you have a high-value asset, that is the reason that you need to choose your EMI aligned with your overall income.
- The validity of property ownership: You must submit all the essential documents to prove your ownership authenticity. This is most important in the case of using your assets as collateral. Property documents like title deed, registration, building plan, and approval documents from concerned authorities also matter. There should not be any legal complexity related to your property. This is essential to make sure that your name is as the owner of the property or co-owner of the property, before submitting the documents.
- The tenure your aim for: In this kind of loan, the loan period is flexible. However, you cannot opt for a very short term visually, as this can lead to loan rejection. You have to understand the terms related to your income and the period you want to receive. In case your monthly income is low, then this is better to try to get more time.
- Your age as the borrower: There are age limits related to a loan against property in Dubai. young people are easier to get loan approval than old people. At the same time, tenure options are also limited, depending on how the borrower is. So, a person aged 55 will have to repay the loan in a short period of time.
- Your job history: The ability to obtain loan approval is partially affected by your job history. The stability of your job matters the most. So, if you have changed your job too many times in the past, it can dent your application for a loan.
Document Required to get a loan against property in Dubai
The required documents that your need to prepare are given below:
- Copy of passport, Emirates ID, and visa
- Copy of trade license
- 12 months bank statements
- Memorandum of association with all the concerned amendments from the inception date
- Copy of sale and purchase agreement
- Last two years audited financial statements
- Documents related to your company
How we can help you?
Taskmaster commercial broker LLC has a team of skilled professionals who help you to obtain a loan against property in Dubai. Our experts have already done this process many times; we have extensive experience in this field.
If you are seeking for loan against property, then we at Taskmaster are here for you. We make your process easy and complete it in a possible short time.
Frequently Asked Question On Loan Against Property In Dubai
Which bank is best for loan against property?
There are many banks that are best for loans against property in Dubai, but to know more about the services you can connect with the Taskmaster commercial brokers that will surely help you regarding the same.
How much loan I can get against my property?
The maximum amount with a loan against proper that a person can get based on the employment status. Self-employed individuals can get an advance. Get in touch with Taskmaster professionals to more about it.
Is a loan against property a good idea?
In case you have a fully formed residential and commercial property without any other encumbrances, a loan, a loan against property is the best choice compared to any other kind of loan. This gives huge sums of money for a little interest rate as the loan is protected by the collateral.
Which bank has the lowest interest rate on loans against the property?
There are many banks that have the lowest interest rate on loans against property such as – HDFC Bank, IDFC Bank, Tata capital, and more. The Taskmaster commercial brokers are here to cover you.
Is a loan against property taxable?
You can claim tax-free from a loan against property in case the loan amount is used for business objectives. In such terms, advantages can be claimed against interest paid and associated costs incurred.