A Loan against property or property mortgage loan is a secured loan granted when you offer your existing residential or commercial property as collateral. These loans are sanctioned by housing finance companies and banks, usually at a lower rate of interest than other traditional forms of loans.
A loan against property is a mortgage loan provided by Banks, housing finance companies and NBFCs on your pre-owned residential or commercial property. There are innumerable benefits of a loan against property that can help you fulfil your financial needs. A loan against property can be of great help for funding personal as well as professional goals. From higher education, dream wedding, vacation to meeting business goals like expansion, new inventory/equipment and even long-term working capital, a loan against property can be the best option.
Get a Loan at Lower Interest Rates: One of the most significant advantages of a loan against property is its low interest rates. Since a loan against property is a secured loan, hence the lenders provide these loans at a lower interest rate as the risk factor is negligible. A lower interest rate translates to lower EMIs and hence, pocket friendly.
Continued Usage of Property: The best part about mortgaging your property for a Loan is that you don’t lose ownership of your property even after you mortgage your property. You can continue to use your property while it serves as a mortgaged property for your loan. You can mortgage different types of properties such as self-occupied/rented out property that could either be a residential property or any commercial space such as office buildings, shops, malls, complexes and more.
Partial Fund Disbursements: A loan against property gives you the benefit of partial loan disbursement, where you can get disburse a part of your loan amount and keep the remaining amount for a later stage. Partial Fund Disbursements are usually beneficial when you take a loan for construction purposes or long-term working capital requirements, where the expense is incurred over a few years. You can take the disbursement of your sanctioned loan amount in multiple tranches as per your requirement. The best part is that you pay interest or EMI only on the amount that is disbursed.
Long Repayment Tenure: Unlike unsecured loans, you can get a longer repayment tenure while you opt for a loan against property. It makes LAP (Loan Against Property) a lucrative option, as low-interest rates and long repayment tenures are what most of the borrowers wish. Smaller EMIs is one of the best advantages of a loan against property.
Higher Loan Amount: A Loan Against Property is a loan that helps you manage your big-ticket expenses, be it for your individual or business needs. Since it’s a secured loan, you generally get finance up to 75% to 100% of the market value of your property. Being a collateral-based loan, it is available at lower interest rates and longer tenures, which further adds to your loan eligibility and helps you get a higher loan amount sanctioned.
Poonawalla Fincorp understands your needs and diligently works towards providing you with the best value and benefits like quick processing with minimal documentation, flexible repayment tenure at zero foreclosure charges, doorstep services and much more. Explore Poonawalla Fincorp Loan against Property offerings. Check out our features and benefits, or feel free to get in touch with our representatives for personalized assistance in your loan journey.
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