As human beings, we all have dreams and aspirations that we wish to achieve in life. However, sometimes due to a lack of finance, our dreams take a backseat. With effective financial solutions, like a loan against property, you can give your dreams the wings to fly and live your life to the fullest. With this, you can easily finance your child’s higher education, expand your business, handle unforeseen medical expenses, go on that much-awaited European holiday and do so much more.
What is a Loan Against Property?
A loan against property is a secured loan availed of against a commercial or residential property used as collateral. Since funds from a loan against property come with no end usage restrictions, borrowers can utilize the funds for various purposes. One can apply for a loan against property to finance all high-end expenditures for business or personal purposes. The interest rate on these loans is also much lower than other loans. On the other hand, though home loan interest rates are lower, funds here can be used only to buy, construct or renovate a home and not for any other purpose. So, one can mortgage different types of property to avail of high-value loans of up to Rs.5 Crore or even higher, based on eligibility or the property in question.
Benefits of a Loan Against Property
Unlike other types of loans, a loan against property is more popular among borrowers due to the given reasons.
Lower Interest Rates
It allows applicants meeting the eligibility criteria to avail of attractive interest rates on loans making EMIs affordable and easy.
Simple Eligibility
The eligibility criteria for availing of a this loan is quite straightforward. A borrower can fulfil it easily and avail of a sizeable loan amount during a cash crunch situation.
Flexibility in End-use of Funds
The funds availed from a property loan can be used for business, personal or medical purposes. There is no restriction on the end use of the loan fund.
Less Documentation
Availing of a loan against property today is easy. It requires minimal paperwork and has a short documentation process.
Faster Approval
Minimum documentation and easy eligibility lead to faster approvals on property loans. This ultimately benefits the borrower as it helps with speedy verification and quick loan disbursal.
Flexible Loan Tenor
What makes property loans popular among borrowers is the loan tenor. The loan repayment period for property loans is flexible and can be stretched over 18 years as per the borrower’s requirement for ease and comfort.
Flexi-loan Facility
One big advantage of a property loan is that, one can avail of the flexi loan option. It means a borrower can borrow as many times from an already sanctioned amount and pay interest only on the borrowed amount. This prevents borrowers from paying extra interest.
Easy Balance Transfer Facility
You can easily transfer the existing loan with minimum documentation to a lender offering better interest rates and facilities. By doing this, the borrower can also avail of an attractive loan against property balance transfer.
No Foreclosure Charges
There is usually no foreclosure or prepayment charges for LAP loans on floating interest rates. This makes it easier for borrowers to part prepay or foreclose a loan when they have funds available with them.
Loan Against Property Eligibility Criteria
To avail such loan, the given eligibility criteria must be fulfilled:
- The age of the salaried borrower must be between 23 years and 62** years and a self-employed applicant’s age must be between 25 years and 70** years
- The applicant must be an Indian resident
- 3 years in private/public sector firm (for salaried borrowers) and 5 plus years of business experience and a steady income (for self-employed borrowers) are must
- The applicant must have an excellent credit score.
** The maximum age is the age considered at the time of loan maturity.
Documents Required for a Loan Against Property
Here are the documents you must keep ready to experience a completely hassle-free loan process:
- ID proof of the applicant, such as Aadhaar card/PAN card/Passport/Voter’s ID/Driving license
- Proof of Address – Electricity bills, Phone bills, etc.
- The applicant’s pay slip for the last 3 months
- Record of the bank account transactions for the last 6 months
- Income Tax Return Certificate
- Property Documents – Buyer agreement/original title deed/property tax receipts, etc.
** Sometimes additional documents may be required while processing the loan. These requirements will be communicated to you by our team.
How to Apply for an Easy Loan Against Property
Applying for a loan against property is easy. Follow these steps:
- Go to your chosen lender’s website and fill out the mortgage loan online form
- Enter personal details and property details
- Submit the loan application form with the supporting documents
- The bank representatives will evaluate the documents and property details
- Once approval is received the funds will be disbursed within 72 hours*
So, during a financial crisis, a loan against property is your best option to avail of loans in the shortest time possible. Bajaj Housing Finance is one of the most trusted names in the market – if you need money urgently and quickly, apply for a loan against property with Bajaj Housing Finance.
*Terms and Conditions Apply
Final Words
This is an excellent way to meet all your emergency financial needs by leveraging your own property to avail of funds. Such loans can help you avail low interest loans, having easy eligibility, and a flexible repayment tenor, thus meeting all your financial needs. So, it can help to make all your dreams come true!
