Features & benefits of loan against property

With the passage of time your property not only grows in age but it also grows economically. This has the potential to bring you out of any financial crisis without taking any favor from friends or relatives. Loan against property from various lenders in the market, helps you to unlock the potential value of your home or property in a very short notice to get loan for your immediate purpose.

The reasons can be personal or commercial. If you own a particular property, then you can get a loan of almost 50-60% of the property value by mortgaging it for certain period of time. Easy availability, lower interest & maximum repayment tenure makes it one of the most favorable collateral.

Loan against property helps the individuals in need, to have a financial support without selling your property.

Some of the features of mortgage loan are as follows:

1. You can mortgage fully constructed, freehold residential & commercial properties to get the loan against property.
2. The borrower can get the loan for business & personal needs, marriage, treatment, education, etc.
3. You can also get the loan to transfer the outstanding loan from one institute to another.
4. The repayment tenure can be stretched up to 15years.
5. You get flexible repayment option in form of EMI to pay off your loan without much hassle.
6. The interest rates are much lower compared to other personal & commercial loans.
7. Integrated branch network & services make it easier for the borrower to get the loan easily.

The above mentioned features proves that loan against property is one of the best options to get a lump sum amount for big budgeted financial need.

Mohit was looking for some financial help to open a shop in one of the biggest mall of the city, but nobody was ready to invest in his startup business. So he decided to move ahead with his plans by approaching the RBI authorized lender with whom he already maintained an account.

The professional advisors suggested him to go for loan against property, because he would get a long term to pay back the loan at a competitive rate of interest. So he decided to mortgage the plot of land which he owned to get the amount, which he needs to invest in the shop he wished to purchase.

The bunch of benefits he enjoyed is as follows:

1. The loan was easily approved because the collateral was dispute free & owned by Mohit himself.
2. He took the loan from the same institute in which he maintained an account, so his loan was processed quickly and received almost 60% of the present value of the property.
3.  He enjoyed pocket friendly EMIs because of the lower interest rates & long tenure.
4. Owing to the flexibility, he could increase the EMI amount with the improvement of his financial affordability.

Now, Mohit is running a successful shop in the mall of his dreams. He is paying his EMIs regularly and is also saving a lump sum amount to pay off the loan against property quickly and free his property from the debt clutches.

You can also make use of mortgage loan when you need lump sum amount, but only condition is that you should be well prepared financially to pay off the debt & free your property.

Bootstrapped start-ups made big with a property loan.

Bootstrapping is not a new idea to start a new venture, every individual have some dreams in life to be self accomplished. Everyone doesn’t go for salaried job, some wishes to establish new business by investing in some infrastructure. But it is not as easy as it seems, because investing in buildings, plots or under construction buildings needs lump sum amount.

Though it is a new fad but mere bootstrapping cannot serve the expensive purposes. On such occasions property loan comes to action to cover up the required amount to invest in some property either for staying or setting up the business. So it helps the borrower to invest in the asset of his choice, without stressing their pockets.

Property loan helps the borrower to get a lump sum amount of money from the financer to buy a property, which can be anyone from the above mentioned list of assets. Smita has always been a keen learner, in love with studies. After excelling in her academics & career, she decided to start an IIT coaching centre for the aspirants. Her savings helped her to kick start the venture, but in order to extend it, she required a lump sum amount. So she decided to approach RBI authorized financer to get the loan.

Before approaching the lender, she collected all the required information available in the online website of the concerned financers in the market.

Then she combed down three or four financers who had few of the specified features, mentioned below:

• The combed financers in her list offered her competitive interest rates for maximum loan amount, depending on the loan slab.
• They were offering assistance for property selection from authorized chain of builders.
• The documentation were claimed to be hassle-free with minimum essential documentation.
• They were offering flexible repayment options with longer tenure.

All the above mentioned features are quite attractive for the borrowers. The factors which helped Smita to choose the one from the four combed lenders were their easy terms & conditions, market goodwill & good reviews from the existing borrowers.

The bootstrapped start up of classroom coaching evolved into an IIT coaching centre with the property loan. Many people like Smita are coming forward to join the bandwagon of loan eagerly. They don’t have to stress their budget with expensive EMIs and short tenures. Once can comfortably pay back the debt with small installments for a longer tenure of almost 30years.

On top of that, they have the flexibility to increase their EMIs with increase in income, so that the borrower can easily & quickly payoff the loan, without counting savings for paying the extra interest cost.

Only make sure that you have a good credit score, disciplined banking statement & no existing debt, when you are applying for the property loan. It not only streamline your loan process but also helps you to get the scope to negotiate for the interest rates and get maximum loan amount that you are eligible for, depending on the loan slab.

The best thing you can do after online research is that take professional advice for making a well informed decision. Debt is meant to be paid without fail, so it’s better to evaluate your financial profile & affordability before taking a property loan.

All the best!