There are several loan options that are available today and each one has its pros and cons. One such option is a Loan Against Property, which is available by using your property as collateral to borrow the money.
A loan Against property works like the other loans; however, the borrowed money may be used for any purpose without any limitation. Some of these include a wedding, children’s education, buying another property, or business expansion.
You may pledge either your residential or commercial property to avail a Loan Against Property. Mortgaging your home must be done only if you are sure of paying the equated monthly installments (EMIs) on time, as there is a risk of losing your property in the case of any delays. Compared to other options like personal loans, a Loan Against Property provides stability and financial support over the long term.
Lenders sanction the loan amount based on the market value of the property. The lenders may offer between 60% and 90% of the value based on certain factors. Some non-banking financial companies (NBFCs) offer up to INR 1 crore for salaried borrowers and up to INR 3.5 crore for self-employed professionals.
With a higher loan amount, you can easily meet your fund requirements. Whether you need money to pay tuition fees or buy important equipment for your business, a Loan Against Property ensures you have the required funds.
A Loan Against Property is a secured facility, which reduces the credit risk for the lenders. Therefore, you may be able to enjoy a more affordable rate of interest when compared to other options like a personal loan.
Furthermore, if you have a higher credit score, the lenders may further reduce the rate of interest as the risk of default is lower. Additionally, if the property is maintained well, the lender may consider reducing the interest rate. All these provide you with a more affordable borrowing option, which results in significant savings over the long-term. Although you may be able to borrow at a lower rate of interest, it is recommended to borrow the amount that you are able to repay on time without any financial difficulties. This ensures you do not face the risk of losing your property due to non-payment or delayed payments.
One of the benefits of a Loan Against Property is the long tenure offered by lenders. In most cases, the amount borrowed as a Loan Against Property is high, and therefore, lenders allow longer repayment tenure.
Longer repayment tenure facilitates a lower EMI, which will not result in a financial constraint while paying monthly EMIs. Lenders may offer up to 20 years to repay the Loan Against Property. It is recommended you use an online mortgage calculator to determine the repayment tenure based on an EMI that you are able to easily afford. Loans available at Finserv MARKETS come with flexible repayment tenure. Moreover, you can apply for the loan from the comfort of your home in a hassle-free manner.
Another benefit of a Loan Against Property is that you may opt for a top-up loan in case you require additional funds to meet any expense. The biggest advantage of the top-up loan is that you are able to borrow a higher loan at an affordable rate of interest over and above the existing facility. Moreover, there is no limitation on the usage of these funds.
Assume that you had applied for a Loan Against Property For Business Expansion. However, after a few months, you realize that you require additional funds. One quick and easy way (if you meet the necessary eligibility criteria) is through a top-up loan. It enables receiving quick funds because you do not have to go through the entire application and approval procedure and it eliminates submitting all documents again. This allows you to meet additional fund requirements in a quick and hassle-free manner.
As the Loan Against Property is a secured facility, the entire procedure is simple and the approval happens quickly. Some NBFCs may approve, sanction, and disburse the money within four working days. You only need to meet their eligibility criteria. These include:
If you are employed, you must be between 33 and 60 years old and an Indian resident. Additionally, you should be working with either a multinational company or a public or a private sector company.
As a self-employed professional, your age must be between 25 and 70 years. Moreover, you must reside in one of the cities that are approved by the lenders and must have a regular income source.
Once you meet one of the aforementioned eligibility criteria, all you need to do is fill the application form and submit the necessary documents. You must have all the documents ready to ensure the entire procedure is completed without any trouble in a quick and an efficient manner.
The aforementioned benefits of a Loan Against Property make it an excellent option to meet large fund requirements and help you achieve your goals at an affordable rate of interest. You may compare different options offered by the various lenders along with their interest rates, tenure, and loan-to-value to make an informed decision.
It is also recommended to review all the terms and conditions that guide Loan Against Property to avoid any surprises in the future. Additionally, check expenses like processing fees, legal and technical charges, and other hidden costs because all these increase your effective cost of borrowing.
Several lenders offer customized loans based on your specific needs. Lenders may also provide pre-approved offers. It is advisable to compare the various offers before you make your decision. To receive instant approval, you may submit basic information, such as name and contact details on the lender’s website.
There are several benefits of a Loan Against Property. So, apply for one today if you want funds to meet any of your requirements.
With Finserv MARKETS, applying for a Loan Against Property is easy, quick and completely hassle-free. What’s more? The complete process is online and can be completed right from the comfort of your home. So why wait? Head over to our website and apply for a Bajaj Finserv Loan Against Property with us, today!
“Finserv MARKETS, a subsidiary of Bajaj Finserv, is a one-stop digital marketplace that has been created for consumers on the go. It offers 500+ financial and lifestyle products, all at one place. At Finserv MARKETS, we understand that every individual is different. And that’s why we have invested in creating a proposition – Offers You Value. A value proposition that ensures you get offers which are tailor made for you. We also offer an amazing product range and unique set of online offers across Loans, Insurance, Investment, Payments and an exclusive EMI store. Be it in helping you achieve your financial life goals or offering you the latest gadgets, we strive to offer what you are looking for. From simple and fast loan application processes to seamless and hassle-free claim-settlements, from no cost EMIs to 4 hours product delivery, we works towards fulfilling all your personal and financial needs. What’s more! Now enjoy the same benefits in just one click with our Finserv MARKETS App.”