Loan Against Property

Creating an asset requires hard work & perseverance, may it be a House or a commercial property, the rewards for ownership are many: besides giving a comfort and identity of a life time a property can also be mortgaged to advance your dreams or in an emergency.

A Loan against Property as the term implies is a method of securing finance, by mortgaging a property as collateral. The property is pledged to the Loan provider for the loan amount appended therefore a Loan against property comes in the secured loan category.

Features for a Loan against Property

• A Loan against property is available to all Salaried, Professional & self employed personnel; Funds received via a Loan against property can be used for Personal and business usage.
• Loan amounts that are granted for a Loan against Property start from 10 Lakhs up to 40 crores taking into account the value of the property and the income of the applicant.
• The repayment tenure allowed for a Loan against property is a maximum of 15 years; the tenure for a personal loan is allotted according to the loan amount sanctioned and the eligibility of the applicant to repay the EMI.
• The loan amount that can be sanctioned for a mortgage is from 50 up to 75% of the market value of the property depending on the type of the property.

Types of properties which can be mortgaged for a Loan:

• A commercial establishment such as Shop, School, Hospital, Hotel.
• An industrial property.
• A residential or commercial plot of land.

Advantages of a Loan Against Property

Financial needs are part of daily life, whether it is fulfilling the mundane requirements, expanding your business or for an emergency: mortgaging your property is a good solution for securing funds conveniently.

The rate of interest applicable for a mortgage is second only to a Home loan, being a secure loan attractive rates of interest are charged as compared to other available Loans. Mortgaging your property will not disturb your working or living environment so carry on using your property as required while securing funds needed.

It may be worth the while securing a loan against property when the requirement is for increased loan amounts, as the tenure for repayment applied for a loan against property is up to 20 years. Hence the loan can be easily repaid, with a suitable EMI that is easily affordable to the applicant. Income of a family member as a co applicant can be clubbed together to get the requisite loan amount.

The documentation required to process a Loan against property is simple and readily available at hand. With the required documentation completed the time taken to process a loan against property is 10 to 12 days. Thus funds are available in the quickest turnaround time when you need them.