Hero FinCorp
Looking For a Reliable Way to Raise Funds? Consider Using Loan Against Property in India
Whether it is about funding your child’s education, planning your daughter’s wedding or making an investment in your own business, arranging adequate amount of money remains a constant struggle. While there are a host of loan options, loan against property in India is quite a popular solution. It allows you to generate relatively a large amount of money which can further be used for any purpose, without experiencing any kind of restriction from the lender.
Although in this form of loan, a property is offered as a security or collateral, only transfer of interest takes place and the rights of ownership remain completely with the borrower. However, ownership may be transferred to a bank or other lender in case of default in the payment. Apart from this, what really makes these loans as highly preferable is that unlike conventional loans, they are available for a longer tenure and at a low interest rate.
Eligibility criteria for loan against property
• To meet the eligibility criteria, you must submit all the required documents such as identity proof, residential proof, salary slip if employed, bank statement of last 6 months and all the papers of the property you wish to offer as a security.
• The eligibility for loan also relies heavily on the credit rating of the borrower and hence, the borrower must maintain a positive credit score.
• For self-employed individuals, the age limit is between 25 to 70 years, whereas for salaried individuals, the age should be between 33 to 58 years. However, this may differ from one lender to another.
• Most importantly, the borrower should be a resident of India.
What are the benefits of loan against property?
1. High eligibility – While the eligibility criteria may differ from one lender to another, the common parameters such as minimum age, income and financial stability used for determining eligibility make it easier to seek approval for the loan.
2. No charges for pre-closure of the loan – It may sound surprising but it is completely true as the borrower is not charged anything for making pre-payment for the closure of the loan. This further makes the repayment process quite simple and hassle-free.
3. No restriction on usage of loan amount – Any funds raised through loan against property in India can easily fit all kinds of monetary requirements as the lender does not dictate the terms of usage of the loan amount. From marriage to renovation, higher education, medical expenses and more, you can use the loan amount for any kind of requirement.
4. Free to use different properties – To raise funds against a property, you are free to use any type of property as it can be residential, commercial, self-occupied or any other piece of land that you own. This immense amount of flexibility allows you to make efficient use of an idle property.
Conclusion
Clearly, loan against property in India can be used as an easy to use and highly dependable finance option. The flexibility of usage served by LAP makes it highly preferable for personal as well as business needs. Besides longer tenure, lower interest rates, easy documentation, free pre-closure and high eligibility, this loan allows you to retain all the rights of the ownership of the property that you offer as security.
by Hero FinCorp on 2021-01-05 01:43:13
