When looking for a reliable and efficient way to meet financial needs like funding a business, higher education or medical expense, a Loan Against Property may be a wise option. It is a secured loan that allows you to unlock the potential of your property without giving up ownership. This type of loan is popular in India due to its numerous benefits, making it an attractive option for both individuals and businesses. Read more to know about the top benefits of Loan Against Property in India.
Top 5 Benefits of Loan Against Property in India
1. Affordable Interest Rate
Since Loan Against Property is a secured loan, it gives lenders confidence that they have collateral in case of defaults or non-payment. The property serves as an excellent collateral, allowing lenders to offer the loan at more affordable interest rates compared to other mortgage loans. Interest rates for these loans vary by lender, typically starting around 8% to 10% per annum but can go up to 20%. Lower interest rate helps you maximize the benefits of a Loan Against Property and reduces the burden of high monthly EMI payments.
2. Easy Eligibility Criteria to Pass
The eligibility criteria for a Loan Against Property is relatively simple. However, it may vary depending on the loan terms. Here are some of the simple criteria:
- Age: If you’re a salaried employee, then the minimum age should not be less than 21 years at the time of loan application and should be a maximum of 60 years at loan maturity. However, if self-employed then you must be a minimum of 18 years at the time of loan application and should be a maximum of 75 years at loan maturity.
- Experience/Vintage: 3 years of total experience and 6 months with the current employer is sufficient for salaried employee. For self-employed individuals, you should be in the same business/profession for the last 5 years.
- Citizenship: You must have an Indian citizenship to apply.
3. Minimal Documentation
Other benefits of include the minimal documentation. The documentation needed for property mortgage loan is simple:
- Identity proof - Aadhaar card/ PAN card/ GST registration if you are a company/ firm
- Address proof - Electricity/ utility bills, rent agreement, passport
- Income/ employment proof - Salary slips, employment letter, income tax returns, profit/ loss statement, balance sheet
- Bank statement proof - Salary credit statement, operative bank account statement
- Property/ title documents
4. Quick Approval
The approval process for a property mortgage loan is often quicker. The screening procedure and eligibility criteria are more thorough where lenders your repayment capacity at length. Moreover, the online option makes it very convenient and saves time.
5. Flexible Repayment Tenure
With repayment tenure ranging from 3 to 15 years, a you get ample flexibility in repaying the loan. You can select a period based on your repayment capacity. Long term reduces the monthly EMI burden; however, a shorter tenure gives the opportunity to clear the loan faster and save on interest costs. This flexibility ensures that the repayment plan is set as per the individual needs.
Also Read - Tax Benefit on Loan Against Property
Why Choose Poonawalla Fincorp’s Loan Against Property
When planning to take a Loan Against Property, it is important to know the additional features and benefits you are getting. This is where Poonawalla Fincorp’s Loan Against Property stands out, making it favorable for both salaried and self-employed individuals.
- Higher Loan-To-Value (LTV): Poonawalla Fincorp offers a higher loan amount to handle your financial obligations. We provide a high Loan-To-Value (LTV) ratio of up to 100% on the property’s market value, ensuring you get enough funds for any purpose.
- Quick and Easy Loan Processing: The application process ensures a seamless experience for its customers. Once the loan application is submitted, a representative assists in facilitating quick processing and disbursal of the loan. This streamlined process helps in getting the funds without unnecessary delays.
- Transparent Processing: What makes Poonawalla Fincorp’s Loan Against Property unique is it’s 100% transparency with its customers. All applicable fees and charges are communicated throughout the loan process and are clearly listed on the loan agreement. This ensures that there are no hidden charges and you are fully aware of the costs involved.
To Conclude
A Loan Against Property offers numerous benefits, including an affordable interest rate, multi-purpose use flexible repayment tenure, versatility in property types, quick approval, minimal documentation, easy eligibility criteria and tax benefits. Whether you need funds for personal or professional purposes, a property mortgage loan may be a reliable and efficient solution. Additionally, choosing Poonawalla Fincorp for your Loan Against Property ensures higher loan-to-value, quick and easy loan processing and transparent processing, making the entire experience seamless and beneficial.
Also Read - How to Secure a Loan Against Property?
Frequently Asked Questions
1. Can I use the loan amount from a Loan Against Property in India for any purpose?
Yes, you can use the funds for various purposes, including personal and professional needs, such as weddings, debt consolidation, home renovation, or business expansion.
2. Which types of properties are eligible for a Loan Against Property in India?
In India, lenders accept a variety of properties as collateral for a property mortgage loan. The types of properties include residential Properties, commercial Properties, plots of land.
3. What is the eligibility criteria for a Loan Against Property in India?
The eligibility criteria for a Loan Against Property in India typically include factors such as your age, income, credit score, and property value. Both salaried and self-employed individuals can apply for this loan.
4. Why choose Poonawalla Fincorp for a Loan Against Property in India?
Poonawalla Fincorp offers transparent processing, higher loan amounts with a high Loan-To-Value (LTV) ratio, quick and easy loan processing, and minimal documentation, ensuring a seamless and beneficial experience.