Owning property can be quite beneficial in more than one way. Besides the fact that it is a personal asset you can live in, the value of the property is always growing and this growth gives rise to lucrative financial options. One of these options is a loan against property, which is one of the smarter ways of borrowing money. It is a secured loan where you pledge your property as collateral or security and receive a loan against it.
Now that you understand the basics about a loan against property in India, learn about its special features and how to apply for it.
A loan against property offers a large loan amount
Due to this loan’s secured nature, lenders are more inclined to offer a larger sanction. This is because the amount is relative to the value of the collateral you pledge or the value of your property and, in the event that you default, this amount can be easily recovered by the lender. Loan against property sanctions can range up to Rs.3.5 crore, making it a perfect fit for almost any financial need.
The loan sanction has no spending constraints
Unlike some secured loan options, a loan against property sanction can be spent in any way you desire from paying for your child’s education to funding a business venture. In other words, the restriction-free spending freedom makes this a viable option for personal as well as business spends.
Affordable EMIs facilitate repayment
Loans against property are affordable simply because of the fact that they are offered at nominal interest rates. Lenders typically offer a flexible loan against property tenor ranging from 2 to 20 years. These two elements in combination translate to huge savings as the EMIs decrease as the tenor increases.
The additional benefit of the Flexi facility
A feature that is exclusive to the Bajaj Finserv Loan Against Property is the Flexi facility. This allows you to withdraw from a pre-approved sanction and only pay interest on the amount you utilize. Since you can withdraw multiple times as and when you need finances, this is especially handy when you’re faced with unexpected bills as you can access funds easily and you’re not required to make any additional applications for loans.
Additionally, the Bajaj Finserv Loan Against Property offers you a loan amount up to Rs.3.5 crore at some of the most competitive interest rates in India. This loan is also speedy in its disbursal as you can get the entire amount deposited to you within 4 days of receiving an approval on your application!
To take advantage of all the loan against property features, you need to know how to properly apply for it. Here is a checklist to go through as you apply for this loan.
Meet the lender’s loan against property eligibility criteria
Typically, to be eligible for a loan against property you must be between 23 to 58 years of age. You’re required to be a salaried citizen of India and must own property in any of the cities on your lender’s approved listing. Additionally, you must meet the minimum annual income requirement and this amount varies according to the city you reside in and the lender you opt for. Ensure you check these criteria before applying for hassle-free approval.
Gather the loan against property documents required
When applying for a Loan Against Property, there are 4 main categories of documents that you need to submit.
- Personal identification: These include you Aadhaar Card, PAN card, Passport, Voter’s ID or Driver’s License
- Address Proof: These include electric, water or telephone bills clearly stating your current address
- Income documents: These are your salary slips for the past 6 months, bank statements and IT returns
- Property documentation: These are all the essential documents of the property you’re going to pledge, and must include the title deed
Depending on your financial need, gauge whether or not a loan against property is the right option for you. Remember that you need to pledge your property in order to gain access to these funds, which means that you must be responsible with repayment or you could risk losing your property. Furthermore, the documentation and criteria for this loan are fairly minimal.