Expanding a business requires a sizable amount of funds, without impacting current operational expenses. A Loan against property is ideal in these situations, as it has several advantages over other conventional loans. It is sanctioned against residential, commercial or industrial property without the need for giving up ownership to a lender. Let us take an elaborate look into the benefits offered by an LAP loan.
You can get tax benefits if you take a Loan Against Property. These benefits can be availed on the interest amount of the loan
Larger Loan Amount
You can get a larger sum of money through an LAP loan as it depends on the market value of the property it is taken against and can go up till 2-5 crores.
Better Interest Rates
As Loan Against Property is a secured loan, the interest rates are lower compared to other loans, resulting in lower EMIs and reduces financial burden.
Longer Loan Tenure
LAP offers flexible and long repayment tenures, in comparison to personal loan. This reduces the pressure on the borrower.
Different Collateral Options
To get an LAP, you can use various types of property like self-occupied house, commercial property, residential property, industrial property or even a piece of land. This flexibility allows easier access to the loan as well as helps you use the property efficiently.
Easy Approval Process
Loan against property eligibility criteria is easier to meet than other loans, as it is secured against your property as collateral. Loan against property eligibility criteria includes minimum age and income, credit history and financial stability. Documentation requirements are also minimal and some financial institutions provide doorstep service as well.
No Pre-Closure Charges
Prepayment towards an LAP is hassle-free, as there are no extra charges or penalization by the lender.
Thus, LAP is a convenient option for businesses to meet their goals. It provides flexible loan amounts with easier interest rates, lower EMI’s, high repayment tenures and easy eligibility. And for getting a Loan Against Property for your business, Electronica Finance Limited.., is your go-to option. A pioneer in machine and MSME lending for 30 years, they provide LAP up to 3 CR., with loan tenure up to 7 years, at an LTV ratio of 70%. The loan tenure allows for easy repayment and the loan can be used for business expansion, asset acquisition or working capital.