Do you own a property and also need a higher amount of money? You are in for a surprise as your property can help you access a large amount of money! Yes, we are talking about the loan against property facility.
If you wish to know more about the concept of loan against property, its benefits, eligibility and more, then this post will help you know all. Read on!
What is a Loan Against Property?
The loan against property is a unique funding solution for your diverse needs. As the name suggests, when you pledge the property with a lender, you get some money.
Most of the leading banks and other lenders can hand over you a higher sum of money. A salaried individual can get up to Rs.1 crore, and self-employed personnel can grab up to Rs.3.5 crore.
Since the collateral is your own property, you get to enjoy and make the most of the lower loan against property interest rates. As a result, it helps you manage the loan and its repayments in smaller EMIs over a longer tenure.
What are the Benefits of Loan Against Property?
Other than a higher loan amount and a lower interest rate, the loan against property also comes with many other benefits such as:
1) Borrow Amounts in Crores
If you are a salaried individual and applying for the loan against property, then you will get up to Rs.1 crore from known lenders. On the other hand, a 3.5 crore is what you can expect from leading lenders being a self-employed professional.
2) Flexible Tenure
When you avail the loan against property facility, you don’t have to worry about repayment part and stress your monthly expenses. A salaried borrower can get a tenure ranging between 2-20 years. On the other hand, a self-employed person can get a tenure of up to 18 years. Hence, with such wider tenure, you can easily stretch the loan amount and repay in smaller EMIs.
3) Easy Balance Transfer
Are you a loan against property borrower who is paying a higher interest rate? You don’t need to suffer anymore as you can transfer the account to a new lender. Yes, you can transfer the existing loan accent from one lender to the one offering a lower rate of interest.
4) Hybrid Feature
It is a unique feature of loan against property where you can borrow out of your sanctioned limits as per your needs, and pay just the interest on it as the EMI. The rest of the amount gets adjusted at the end of the loan period.
5) Online Loan Account Management
You can track the progress of your loan account 24/7 and from anywhere right via the digital customer portals of your lenders.
The Loan Against Property Eligibility
To apply for loan against property, you need to prove your eligibility such as:
✓ Your age should be 25-70 years
✓ You should be an Indian citizen
✓ You should be a working individual working for a private, MNC or public sector company
✓ You should be self-employed with a regular source of income
✓ You need to have your property that you need to pledge in one of the cities as declared by your lender
Loan Against Property Documents Required
Some of the standard loan against property documents required includes:
- KYC details
- Address proofs
- Last 3 month’s bank account statements
- Latest Salary Slips
- The copy of the documents of the property that you wish to mortgage
You are now well-versed with the concept and benefits of the loan against property facility. If you are ready to go, you can apply for loan against property online. To discover your pre-approved loan offers, you can share some basic details like your name and contact number.
Bajaj Finserv has some incredible pre-approved deals on loan against property, home loans, personal loans, business loans and beyond. Going for such offers will help you go through the loan processing faster and hassle-free.