Personal Loan Against Property

What is Personal Loan Against Property?

A personal loan against property is one where you mortgage your residential or commercial property as security to avail a loan of a specific amount from the lender. Generally, a personal loan is called an unsecured loan but a personal property loan is a secured loan because you are pledging your property against the loan. You can avail the loan against a house, commercial space, under-construction house or vacant land. If there is more than one owner of the property, all the co-owners have to consent for mortgaging the property.

Why take a Personal Property Loan?

• No Restriction on Credit Utilization: When you take a wedding loan, travel loan, online home loan or consumer durable loan, you are bound to spend the money only for that particular purpose.

• Attractive Personal Loan Against Property Interest Rates: While regular personal loan interest rates range from 12% -24%, personal loans against property are relatively cheaper; ranging from 9%-13% based on your creditworthiness.

• Longer Repayment Tenure and Lower EMIs: While traditional personal loans are available for a maximum tenure of 60 months or 5 years, a personal loan against property can have a long repayment tenure of up to 20 years. The longer tenure also helps bring down the EMI value considerably, thus making it easier for borrowers to repay the loan.

• Faster Loan Approvals: If you are looking for an emergency fund to meet a medical emergency, carry out a repair, or pay your employees during a slow business phase, a loan against property is your best option. As this is a personal loan against collateral, you can expect swift approval and disbursal.

Eligibility for Personal Loan Against Property

To be eligible for applying for a personal property loan, you need to meet a few conditions, such as:

• You must be a citizen of India

• You must be the owner or co-owner of the mortgaged property

• The loan applicant must have a regular source of income as salary, business income, rental income, etc.

• The loan applicant shouldn’t have a high debt-to-income ratio

• A good CIBIL credit score and history helps get good deals on personal loans against property

Documents Required for Personal Loan Against Property

In financially uncertain times, if you are looking for funds to expand your business, consolidate your debt, renovate your home, pay for your child’s higher education, look no further than personal loans against property.