Gone are the days when loans were just vanilla financial products. These days, there are no one-size-fits-all loans. Therefore, lenders are offering a variety of loans to meet the increasing demand for funding unique purposes. One such clever solution in the credit sphere is the loan against property.
Whether commercial or residential, real estate not only adds to your net worth but also serves as an excellent cushion to fall back on in times of financial needs. From paying for your children’s education to their wedding, funding your equipment purchase, to expand your business, you can pledge your property to meet various expenses. Read on to know more about a mortgage loan.
What is the meaning of a loan against property?
A loan against property is a loan taken by pledging a real estate property, which makes it a secured loan. Lenders offer a loan amount of up to 80% of the market value of the pledged property. You can pledge your property and use the funds for many purposes. Look at the uses and benefits of a loan against property below.
Uses of a loan against property
- Expansion of business
- Children’s wedding expenses
- Child’s higher education
- Medical treatment
- Purchase of a new property
- Renovation of existing property
- Debt consolidation
- Working capital requirement
Benefits of a loan against property
- Access high-value loan amounts irrespective of your income and meet big-ticket financial needs.
- Avail funds by pledging your property as collateral, which means you don’t have to sell it; it is still under your ownership.
- Enjoy lower interest rates as compared to unsecured loans like personal loans.
- Use longer repayment tenor options for a convenient repayment.
Now, look at the eligibility criteria to avail a loan against property.
Additional Read: How debt consolidation helps manage your finances better
Eligibility criteria of a loan against property
Though eligibility criteria for a loan against property vary across lenders, the following are the common requirements for both salaried and self-employed:
- Specified age group
- Decent income and savings
- Existing debts or financial obligations
- Market value of the property
- Credit history and score
To enjoy simple eligibility criteria and qualify for the loan faster, apply for Loan Against Property offered by reputable lenders such as Bajaj Finserv. With this loan against property, you can access high loan amounts of up to Rs. 10.50 crore* basis eligibility, at competitive interest rates. Further, you can comfortably repay the loan over flexible tenors ranging up to 15 years.
What’s more, by opting for the Flexi Loan feature, you can borrow multiple times from your sanction, pay interest only on the used amount and thus reduce your borrowing costs. Moreover, you can choose to pay interest-only EMIs throughout the tenor and repay the principal only in the end to manage your finances better. Apart from this, you can benefit from the minimal documentation requirements and quick approval. So, check your pre-approved offer to benefit from your personalised deal and expedite your financing.
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