Loan against property – A quick guide

Do you have a commercial, residential or industrial property in a nice location with good infrastructure? If yes, you can use it to apply for the property loan. This way, you can borrow a large loan amount.

The property loan is given against such property that you need to keep as the collateral. Based on the loan eligibility factors and the Loan to Value (LTV) of your property, you can get a significant amount. You can use the loan money to meet any of your needs as per your wishes.

A property is considered as an asset that you can use during the emergency. When such property is used as the collateral, the loan is provided by a lender at a lower rate of interest. And that leads to the payment of lower EMIs helping you manage your expenses better.

What is a loan against property?

As the name suggests, when you pledge your property with a lender, then the loan is provided against its LTV value. The loan amount could be higher, and the final loan money depends on the condition of your property and other eligibility elements.

What property loan eligibility do you need to fulfil before applying?

You will need to match the eligibility norms of the lender while applying for the property loan. It may vary from creditors to creditors. Take a look at the standard property loan eligibility conditions:

  • The age of the applicant needs to be between 33-58 years.
  • You need to be a resident citizen of India.
  • You should be employed with an MNC, Public or a Private Limited Company.
  • Latest Salary slips.
  • Last 3 months’ bank account statements.
  • PAN Card/Aadhaar Card.
  • Address proof.
  • Copy of the documents of the property that you want to be mortgaged.
  • Income Tax Returns (ITRs).

What is the process of applying for the loan against property online?

The application process of the loan on house property is less cumbersome. Here’s a quick look at the standard online loan application process:

  1. Go to the website of the lender you want to apply for the property loan with and fill the online loan application form.
  2. Once you have submitted the online loan application form, the representative of the lender will contact you to take this forward. You will also need to submit the required loan documents to the representative itself.
  3. If you have the required eligibility, then the loan against industrial property application will be approved within 48 hours.
  4. After you have the loan approval, you can get the sanctioned amount in your bank account within 4 days.

What advantages do you get while taking the loan against property?

The loan against property facility of a known lender comes with many advantages. Let’s take a look:

Manage your numerous needs with a single solution

If you have needs that require big-ticket finance, then you can rely on the loan against the industrial property facility to cover all. The property loan can meet your needs, such as:

  • To manage the funds for an upcoming marriage in the family
  • To consolidate all high-interest accruing debts and pay a single EMI each month.
  • To fund the expenses of your children’s overseas education.
  • To manage an urgent medical emergency.
  • To expand your business.
  • To fund all other personal needs.

When you apply for the loan against property, then you don’t need to ask for anything else. It is because a large loan amount is given to the borrower.

Large loan amount made possible

Lenders can sanction anything between 70-90% of the value of your property. If your property is located in a prime area with growing infrastructure, then you can borrow a huge loan amount. The final loan amount to be disbursed will also depend on your credit score, repayment history, and income and job profile.

Benefit from managing a lower property loan interest rate

Since the loan against property is secured finance, leading loan providers charge a lower rate of interest. Managing lower property loan interest rate will mean paying smaller EMIs to help you manage your expenses better.

Quick loan disbursal facility

If you are eligible for the loan, then you can expect top creditors in India to disburse your sanctioned loan amount within 4 days. This way, you won’t have to wait for funding your needs.

Flexible tenor to help you repay the loan easily

The loan against property comes with a flexible repayment tenor ranging 2 years and 20 years. It means that you can stretch the loan amount and pay smaller EMIs to manage your monthly outlays better.

The process of applying for an online property loan is now discussed. If you are all set, then you should compare all available deals online and choose the best offer.

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