How a Loan Against Property Can Fulfil Your Dreams
New Delhi : We all have dreams and aspirations that we want to achieve. Unfortunately, many people’s dreams take a backseat due to a lack of finances. However, today there are financial solutions to help you out of every sticky situation.
With a loan against property, you can give wings to your dreams, see them fly, and also live your life to the fullest. You can easily finance your child’s education, manage your wedding expenses, expand your business, or even handle unforeseen medical expenses, celebrate your maiden marriage anniversary, travel on the much-awaited European holiday, and do much more.
A loan against property is a secured loan availed of against a commercial or residential property kept as collateral with the lender. Since the funds come with no end usage restriction, borrowers can utilize the funds for various purposes, such as business expansion, paying for a child's wedding or education, etc.
You can take advantage of this loan by mortgaging a residential, commercial, or industrial property. A loan against property is a convenient option to finance all high-end expenditures for business or personal purposes. You can mortgage different types of property as collateral to avail of high-value loans to the tune of Rs.5 Crore or even higher, basis your profile and the property in question.
When applying for a loan against property, you would be required to provide documents, such as ID proof, address proof, income documents, and property documents along with an application form to the lender to verify your loan eligibility.
A loan against property can be used to achieve several financial purposes and dreams. Read on how a loan against property can help you fulfil all your dreams.
What Can I Achieve with a Loan Against Property?
If you have been looking for an answer to this question, you’ve come to the right place. There are several ways that a loan against property can help you achieve your dreams. Here are some of them.
1. Debt Consolidation
Debt consolidation loan combines all your existing borrowings into one, leaving you with a single Equated Monthly Instalment (EMI) to tend to every month. An offering like a loan against property can give you substantial financing for a long period. This is especially helpful since you also get to convert all your high interest loans to one relatively low interest loan.
2. Business Expansion
Are you planning on setting up a new business or expanding an existing one? Businesses need funds to keep things moving forward. In such cases, a loan against property can come in handy by giving you some extra cash and aiding your business’ growth. From buying new equipment to launching new products, funds from loans against property can be helpful for your business.
3. Cover Higher Education Cost
Studying in a good educational institution requires a substantial investment consisting of travelling overseas, living in a new place, and more. Applying for a loan against property can help you finance the expenditures related to not only your child’s education but even yours if you desire to study further.
4. Finance Wedding Expenses
Indian weddings are a gala affair and even a simple wedding entails considerable costs to the hosts. From selecting the wedding venue to booking a honeymoon abroad, a loan against property is an end-to-end financial solution that helps you manage all your wedding expenses.
5. Tackle Health Emergencies
Handling a health emergency amidst soaring medical costs is a daunting challenge that may only worsen further because of funds. To lift those immediate medical funds, a loan against property serves as a better choice given its quick disbursal duration.
6. Travel the World
With a property loan, you can travel the world, go on holidays alone or with your family without stress or fear of no funds. A loan against property is an end-to-end financial solution that helps you manage all your holiday expenses.
Benefits of a Loan Against Property
When you apply for a loan against a property or mortgage loan, you enjoy a property loan with several benefits that enable you to meet your high-end expenses with ease. Below are some benefits customers enjoy.
1. Low EMI and Comfortable Repayment
You can apply for a long repayment tenor of up to 18 years. This distributes the loan amount and gets you a lower EMI amount every month. calculate your loan EMI by using a loan against a property calculator.
2. Low Interest Rates
A loan against property is a secured loan and, therefore, comes with a low rate of interest as compared to unsecured loans, such as a personal loan.
3. Low to No Prepayment Charges
As per RBI mandate, individuals with floating interest rate loans are not liable to pay any additional charges on prepayment or foreclosure.
How to Apply for a Loan Against Property
Key lenders in India allow applicants to submit their applications online, with only a few details to support the form. Typically, once you fill the loan against property form, a representative gets in touch with you for document collection and other steps. If all your documents are in place, you stand to enjoy quick approval and disbursal.
Several key lenders today provide attractive terms on loan against property offerings. Currently, the interest rate on these loans begins as low as 8.35%, which is another reason why now is a great time to avail of financing under this solution.