A loan against property offers many advantages because
of which it’s a convenient option to fund necessary expenses. One can use the
funds sanctioned on a loan against property to expand a business, buy a house,
fund higher education abroad, or meet medical expenses.
Along with the freedom to use the loan amount as per discretion, different types of loan against property available is an advantage. These different types of loan against property are customised to suit a borrower’s unique requirement and repayment capability.
Types Of Loan Against Property
Here are the loan against property types available in India.
- Loan Against A Commercial Or Residential Property
Lenders prefer mortgage loans against commercial or residential property over most other forms of loans. One can easily meet loan against property eligibility when he/she mortgages such property as lenders put more weightage on the property value mortgaged than the borrowers’ credit score. However, it is still advised to apply for such loans with a credit score of at least above 700 to avail a substantial LTV.
Note that LTV or Loan to Value is the percentage of the property’s market value which the lender sanctions as the loan.
- Loan Against Property For Home Renovation
Loans against property in India or anywhere do not come with any end-use restrictions. You can readily use such funds for a home renovation project. You can choose to avail a certain portion of the loan amount you are eligible for and utilise them fruitfully to meet the necessary expenses.
- Loan Against Property For Higher Education
Higher education is a guaranteed way to open doors to multiple opportunities for career advancement. Many aspire to earn a valuable degree from a foreign university and expand their horizons with an educational experience abroad. One can conveniently fund the expenses with a loan against property. Payments for tuition fees, food and accommodation, can be financed with the borrowed sum. Note that a property needs to be in your name or at least under joint ownership if you want to avail the loan against. In case of the latter, you have to apply for the loan jointly.
- Loan Against Property For Debt Consolidation
One of the most beneficial loans against property types is a loan against property for debt consolidation. It allows you to pay off all your existing debts so that you need to pay EMI only for a single loan. A low-interest rate and a long tenor also help here.
- Loan Against Property For Chartered Accountants
Several financial career institutions offer customised loans against properties for chartered accountants. If you are a professional CA, then these can be a highly beneficial option for you. CA loan against property documents required are customised to meet the professional requisites are minimal.
CA’s can utilise this loan to start their firm, open a new branch, or renovate an existing office. They can also use these to fund their child’s education and for other personal needs.
- Loan Against Property For Doctors
Doctors can take advantage of this customised loan against property just as a CA can. With a loan against property for doctors, medical practitioners can purchase new equipment; renovate a clinic or a nursing home, and develop better infrastructure for treatment. With advantageous loan against property features like low-interest rates, it’s a smart choice to opt for credit.
You can easily avail all these types of loan against property from the correct financing institution. You should opt for lenders who provide borrower-friendly terms and added benefits. For instance, Bajaj Finserv offers Loans Against Properties with their Flexi Loan facility. It allows you to withdraw a certain section of the sanctioned amount and pay interest only for that amount and not on whole loan borrowed. You can even choose to pay interest only as EMIs and repay the principal at the end of the tenor. Further, you can withdraw as much funds from the sanctioned for an interest-free period of 24 hours.
Additionally, Bajaj Finserv also brings you pre-approved offers which simplify the process of availing such loans and reduce turnaround time. Pre-approved offers are available on numerous financial products including home loans, business loans, personal loans, etc.
Leverage the value of your property via a loan against property to forward your finances and meet your personal or professional requirements. Create a stronger future for yourself against a minimal increase in your monthly liabilities.