Even if you are incredibly meticulous with your finances, additional funds will often be required. That’s where your property comes in. Your property is a very valuable asset that could be used in case of financial emergencies by using your commercial or residential property to avail a mortgage loan.
A mortgage loan is a type of secured loan wherein you can avail funds by providing your asset, in this case your property, as a collateral to the lender. The borrowed amount can be used to take care of various expenses such as a wedding, hospital charges, etc.
Why should you take a loan against property?
The chance of approval is significantly higher in case of a loan against property. It gives the lender, a bank or a non-financial banking company, a sense of confidence that the loan will be paid back.
Follow these steps to ensure a hassle-free experience:
If your property has more than one owner, it is necessary for all owners to be part of the process. They will all be made loan applicants against the loan against property. The type of property does not make a difference as long as the title of the property is clearly defined.
Do your research thoroughly. Before selecting a lender, compare the interest rates, accompanying fees and charges such as processing fees, EMI bounce charges, etc. Ensure that you have all the information you need before proceeding with the process.
Once you have selected a lender, find out what the maximum loan amount is. This amount directly depends on the value of the property. For example, EFL offers upto 70% on the property and self-employed individuals can avail an advance up to Rs. 3 crore.
Check your loan against property eligibility. Different lenders have different criteria which you will need to match in order to be eligible for a loan. The lenders will also ask for certain information such as property documents, identity and address proof, bank statements, IT returns, etc.
The next step is to apply for a loan against property, which can be either done online or offline. To apply offline, you need to visit the closest branch of your selected lender. To apply online, fill the application form for Loan Against Property along with the relevant documents. You can find the loan against property documents list on the respective website.
The lender will then check your documents and application form and get in touch with you once they have evaluated the risk of lending. This process is usually done by assessing the market value of the property, your personal record of repaying other liabilities, income, savings, and employment or business risk.
Once the evaluation is complete, your loan will be disbursed to your bank account.
At EFL, the loan against property is sanctioned after a detailed assessment of all documentation as well as the customer and property. If you have a bureau score of more than 600, a business vintage of more than 3 years, and a turnover of more than Rs. 1 crore, your chances of being accepted for a loan against property improve.
Some unique features of EFL loan against property are:
You can take a maximum loan amount of upto Rs. 3 cr.
The loan is repayable upto 84 months.
Loan-to-value ratio upto 70% of the property value.
Industrial property can be used as collateral.
Thus, business loans are a great way to access much needed funds, be they for commercial expansion for your business, or other personal requirements.
To apply for Loan Against Property and to check your eligibility, click here.