You may need to borrow money for a range of reasons. It can be an urgent medical expense, debt consolidation, your child’s higher studies or marriage, business expansion, working capital, etc. The asset you pledged as collateral will be taken by the lender and possibly sold to cover the dues. If you take a secured loan, your finances won’t be affected if you fail to repay the loan.
An example of a secured loan is a loan against property (LAP). You can apply for a loan against property for personal and business needs. But what key features and benefits should you look for? Here’s a look.
Flexible Large Loan Amount
Top lending banks offer loans against property starting from ₹5,00,000 to ₹10,00,00,000. So, whether your financial requirement is big or small, you can apply for a loan of a suitable amount. This is especially helpful for owners of small businesses who wish to expand them.
Loans for All
Reputed lending banks allow salaried people like government and corporate employees and self-employed ones like lawyers, doctors, CAs, small business owners, and traders to apply for a loan against property. This way, more and more people can reach out for financial support in times of crisis.
Quick Loan Disbursal
If you apply for a loan against property at a renowned lending bank, experts will review your application in your presence. So, there is no need to visit the bank multiple times. Also, there is no hassle of sending numerous requests for documentation. The money is usually disbursed in less than 72 hours if your loan application is approved.
If you are an existing customer of the same bank, the time needed to process your application will be lower. That is because your documents would perhaps already be with the bank, and the staff might have already performed multiple checks.
Easy Eligibility Criteria
A leading Bank keeps the eligibility criteria simple so you can easily apply for a loan against property. Usually, you can take such a loan against a residential or commercial property. You only need to meet the following criteria to apply for the loan:
- A resident Indian
- 28-60 years (salaried individuals), 28-70 years (self-employed individuals)
You may also be allowed to increase your eligibility by adding a salaried or self-employed applicant (18-65 years) with a good credit score. A woman co-applicant can often get you a lower interest rate on a loan, including a home construction loan.
Convenient Balance Transfer Facility
Some banks offering loans against property also have a good balance transfer facility. If the interest rate on your current loan against property is higher than that provided by a reputed bank, you can transfer the loan’s outstanding amount to the latter. In that case, you can enjoy a lower and more competitive interest rate. This can help reduce your EMI burden. You can also get tax benefits against the loan.
It is a Highly Rewarding Experience
Top banks for loans against property provide the benefit of walking into the nearest branch to avail of special offers of the day. Plus, the experts can educate you about the perks of each request to help you choose the most suitable deal.
Look for these benefits when you apply for a loan against property. However, please don’t confuse it with a home construction loan. A loan against property is used to finance a range of goals by pledging a plot of land as collateral. However, a home loan is taken to fund the purchase of a home solely, and the lending bank keeps the property papers as security.