Establishing a new business venture in this competitive business world can be a very overwhelming task. Handling your business finances can become very hectic and thus making it difficult for you to maintain a healthy cash flow in the beginning.
In such a situation, most people either opt to take a small business loan or business loan against property. However, when it comes to mortgage loan eligibility, being a young and new entrepreneur can disqualify you from applying to a variety of loans. Hence, most new business owners in the market usually suggest LAP.
This type of business loan falls under secured loans category. For a LAP for business, as the name suggests, you have to secure a residential or commercial space you own to get the money. Also, it comes with many attractive repayment options as well.
Still wondering why you should take a LAP for streamlining your business operations? Here are five reasons that will help you understand why you should use a loan against property for business.
1: You can secure a huge amount
In today’s era, establishing a business has become very simple. There are many government schemes that offer small business loans, minority business loan as well as small business loans for women. However, in case you need a huge amount as loan, consider taking a LAP. This way, you can obtain a percentage of the market value of your property as a loan.
2: You can get nominal rate of interest
When you seek a business loan against a property, the rate of interest charged is relatively lower as the lenders are assured about the repayments.
So, whether you require money to start a new business venture or streamline your existing business operations, with a LAP, you can make sure that your finances are stable. Also, you have the liberty to switch between lenders that offer you most nominal interest rates.
3: You can repay your loan over a longer period of time
Taking a loan against property for starting a business is one of the best loan solutions as it allows you to repay the loan amount over a longer tenure. The tenure period can range from 18 to 20 years. Hence, you can simply avail property based collateral loans for funding your start-up venture and do not have to worry about huge EMI payouts.
4: Has simple eligibility terms
Securing a loan against property is very easy as your eligibility is not dependent on your monthly income. Since you are taking a loan by providing collateral, you can secure a huge loan amount successfully. All you have to make sure is that your asset is free from any litigation.
5: You can simply align your loan to your company’s needs
One of the best ways to fund your company’s ever-increasing demands is by securing a LAP. Moreover, if you avail a LAP with flexi loan facilities, you can borrow a small portion from the approved loan amount when and as required. Additionally, the interest is charged only on the amount that you utilize and not on the entire loan amount.
The Bottom Line
Simply kick-start your new business venture by taking a Loan Against Property. You can avail the flexi loan facilities on Bajaj Finserv Loan against Property from Finserv MARKETS. In fact, you can also benefit from features like minimal documentation, low EMIs, bespoke loan solutions and much more. Your loan application is approved in under 3 minutes and the loan amount is credited in your bank accounts within 24 hours.
Read more on what are the types of properties against which you can get a loan
However, when it comes to equitable mortgage loan eligibility, being a young and new entrepreneur can disqualify you from applying to a variety of loans.
Finserv MARKETS, from the house of Bajaj Finserv is an exclusive online supermarket for all your personal and financial needs. Loans, Insurance, Investment and exclusive EMI store, all under one roof- anytime, anywhere!