Home equity is the current market value of a property available to the owner after taking into account any outstanding loans. This equity can be realised by taking a loan against the property, which can be used for generating funds at a lower cost since the property will be provided as security for the loan. The term of the loan can be as long as 15 years, which makes repayment easier. Such loans are offered by most banks, NBFCs and housing finance companies. Such a loan is typically available against residential and non-residential property. The lender may impose other conditions and requirements, such as the property being fully constructed or a minimum market value. The borrower must have clear title to the property being offered as security.
read more >>