What You Need To Know About The Benefits Of Loan Against PropertyPurchase & Refinance Mortgage LoansUpdated on Oct 10, 2018 View more like this | Visit India, UN | Contact Aditi Ahuja |
Loan against property (LAP) or a mortgage is popular because it has some perceptible benefits. Higher loan amounts are generally available for longer tenure with floating interest rates when compared to conventional loans, and at a discounted interest rate. Most banks accept both residential and commercial properties for mortgage.
Let’s look at them now.
1. It Is A Secured Loan
It is easier to get a secured loan approved in comparison to an unsecured loan. Having secured loans is also a great way of improving your credit score. The property you want to keep as collateral should have a clear title. The loan approval might require you to furnish some more proofs with your application.
2. Serve Variety of Your Needs
Most people borrow a loan against property for huge funding requirements like further education, medical costs, travel plans, weddings, or even to set up a new business. Like personal loans, a LAP can be taken to fund any financial need, without having to mention the objective.
You can also use a loan against property to consolidate all you existing debts into one single loan.
3. High Tenure with Low Interest
Ranging in the 12% to 16% interest bracket, your lender can offer you a floating interest rate instead of a fixed one on your LAP. Such loans also offer you a long repayment tenure, going up to a maximum of 15 years. With sufficient time and a floating interest rate, LAPs are form a generally cheaper financing option.
4. Loan Against Any Kind Of Property
LAP offers you the freedom of securing your loan with any kind of property you own. It can be a land you have purchased or even a home that is under construction. It can also be a commercial property that is owned by you. Lenders consider many factors like your property value, legal clearances, etc before they sanction the loan amount.
To know the 3 types of loan against property, click here.
5. Easy To Avail
You can be a salaried individual, self-employed or a professional, LAP is available for all, provided you have an issue-free property in your name. Since the processing of such loans is quick, consider keeping all your property and income documents handy. You can also consider going for a fixed interest rate to make your application easier.
6. Unlocks The Value Of Your Property
The value of your property increases with time. By availing a loan against this property, you can unlock its true potential. This rise in value can increase the amount of loan you get, allowing you to have funds for all your other financial needs.
7. Avail A Higher Amount
A secured loan like a LAP can get you 60%-70% of the value of your property. This amount can fluctuate depending on changes in the value of your property. Any legal issue may also result in your loan amount being reduced.
Additional read: loan against third party collateral
8. Keep The Property In Your Name
In a LAP, your property is merely pledged. It being kept as a collateral in a loan doesn’t stop you from being its owner. You can continue to reside in or use it or even rent it out and earn an income from it. In case of multiple owners, all owners will be required to give their approval for the loan to be approved.
Conclusion
Financing a wedding’s expenses, funding your child’s education, expanding your business or even handling any unforeseen medical expenses, a Bajaj Finserv Loan Against Property can do it all!
1. It Is A Secured Loan
It is easier to get a secured loan approved in comparison to an unsecured loan. Having secured loans is also a great way of improving your credit score. The property you want to keep as collateral should have a clear title. The loan approval might require you to furnish some more proofs with your application.
2. Serve Variety of Your Needs
Most people borrow a loan against property for huge funding requirements like further education, medical costs, travel plans, weddings, or even to set up a new business. Like personal loans, a LAP can be taken to fund any financial need, without having to mention the objective.
You can also use a loan against property to consolidate all you existing debts into one single loan.
3. High Tenure with Low Interest
Ranging in the 12% to 16% interest bracket, your lender can offer you a floating interest rate instead of a fixed one on your LAP. Such loans also offer you a long repayment tenure, going up to a maximum of 15 years. With sufficient time and a floating interest rate, LAPs are form a generally cheaper financing option.
4. Loan Against Any Kind Of Property
LAP offers you the freedom of securing your loan with any kind of property you own. It can be a land you have purchased or even a home that is under construction. It can also be a commercial property that is owned by you. Lenders consider many factors like your property value, legal clearances, etc before they sanction the loan amount.
To know the 3 types of loan against property, click here.
5. Easy To Avail
You can be a salaried individual, self-employed or a professional, LAP is available for all, provided you have an issue-free property in your name. Since the processing of such loans is quick, consider keeping all your property and income documents handy. You can also consider going for a fixed interest rate to make your application easier.
6. Unlocks The Value Of Your Property
The value of your property increases with time. By availing a loan against this property, you can unlock its true potential. This rise in value can increase the amount of loan you get, allowing you to have funds for all your other financial needs.
7. Avail A Higher Amount
A secured loan like a LAP can get you 60%-70% of the value of your property. This amount can fluctuate depending on changes in the value of your property. Any legal issue may also result in your loan amount being reduced.
Additional read: loan against third party collateral
8. Keep The Property In Your Name
In a LAP, your property is merely pledged. It being kept as a collateral in a loan doesn’t stop you from being its owner. You can continue to reside in or use it or even rent it out and earn an income from it. In case of multiple owners, all owners will be required to give their approval for the loan to be approved.
Conclusion
Financing a wedding’s expenses, funding your child’s education, expanding your business or even handling any unforeseen medical expenses, a Bajaj Finserv Loan Against Property can do it all!
