How loan against property can fulfil your dreams

Owning a property counts as a great asset for any individual. It doubles up as a bonus when you can raise some additional capital against your property to fulfill your immediate financial needs or long-term life goals, be it for business or personal use.

One such financial option is the Loan against Property (LAP). A Loan against Property is a secured loan disbursed against property as collateral. The property can be residential, commercial or industrial.

Purposes to Apply for a Loan against Property

A property loan can be used to fulfill several financial purposes some of which include:

Fulfill Business Needs

Whether setting up a new business or expanding an existing one, businesses need funds to keep things rolling. In such cases, a Loan against Property can come in handy by providing you with some extra cash and aiding the business’ growth. From buying new equipment to launching new products, funds from loans against property can prove to be helpful for your business.

Cover Higher Education Costs

In today’s times, higher education at good educational institutions requires a considerable investment consisting of traveling overseas, living at a new place, and more. Applying for a Loan against Property can help you finance the expenditures related to your child’s education.

Fund Wedding Expenses

Indian weddings are a gala affair and even a modest wedding entails considerable costs to the hosts. From selecting the wedding venue to booking a honeymoon abroad, a Loan against Property is an end-to-end financial solution that helps yo9u manage all your wedding expenses.

Tackle Health Emergencies

Dealing with a health emergency amidst rising medical costs is a daunting challenge that may only get aggravated further due to a shortage of funds. To raise those immediate medical funds, a Loan against Property serves as a better option given its quick disbursal period.

Debt Consolidation

You may be servicing multiple loans, each taken for a different purpose. At such times, consolidating your loans can be a smart move. Debt consolidation rolls all your existing borrowings into one, leaving you with a single EMI to tend to every month. An offering like Loan against Property can give you sunstantial financing for a long period.

Benefits of Loan Against Property

A Loan against Property that caters to both individuals and businesses for meeting their essential goals serves many of the following benefits:

Higher Loan Amount

Loan against Property offers its borrowers a loan amount of upto 60-70 percent of the property’s market valuation, depending on their eligibility and documentation.

Low-Interest Rates

As the property is furnished as collateral, a Loan against Property offers a relatively lower rate of interest in comparison to the dearer interest rates of personal loans. The lower interest rates result in reduced EMIs and financial burden.

Flexible Repayment Tenure

Loan against property provides its borrowers with a flexible repayment tenure of upto 15 years. This longer tenure helps reduce the financial stress on the borrowers giving them ample time to repay the loan.

Quick Processing and Approval

By applying for a Loan against Property, the borrowers do not have to wait for several days to get their loan sanctioned. Depending on the documentation, eligibility and clear legal title, the borrower is now entitled to receive instant loan approval and funds transferred into his/her bank account.

Conclusion

While applying for a loan against property, borrowers would be required to furnish documents such as ID proof, address proof, income documents, and property documents along with an application form to the lender to verify their loan eligibility. In such cases, a reputed lender like the HDB Financial Services (HDBFS) with a wide online and offline presence, and years of proven experience and expertise can aid the borrowers in obtaining a Loan against Property with exclusive features and benefits such as a balance transfer facility. Besides, it guarantees safe custody of your mortgaged property papers throughout the loan tenure. You can now apply for a loan against your property through HDBFS online or by contacting your nearest HDB Financial Services branch with minimal documentation and fulfil your dreams.