While there are multiple types of loans available in the market, a loan against property, or LAP, is one of the cheapest & secured options available in India.
Multiple lenders offer this type of loans in the Indian market; financial institutions like Bajaj Finserv even provides hassle-free Loan Against Property of up to Rs. 3.5 Crore for individuals with facilities like easy balance transfer and flexible tenor options.
Loan against land property offers a unique opportunity where you can keep your personal or commercial property as collateral and borrow money against it. An attractive feature of this type of loan is the amount of fund. Up to 40%-70% of your property’s market value will be available as a loan.
LAPs are a great solution for anyone who is looking for a quick boost in his/her financial condition. A person has to meet a few criteria to apply for these types of loans. Although they differ between different institutions, some requirements are common amongst all.
If you are availing a loan against property India, you must be an Indian citizen and own the property yourself. Also, as an applicant, you must be employed.
Whether you are a self-employed or salaried individual, you must have a stable source of income. Also, a good CIBIL score is preferred to get a LAP.
Loan against a property offer multiple benefits other options. These are made to be easy to avail, with a relatively low-interest rate and long repayment tenor. Let’s take a look at some of the features of LAPs.
Easy to Avail
As you are keeping your property as collateral, the process becomes a lot quicker and streamlined. You need to submit the papers of your property along with documents like ID proof, address proof and proof of income, and your loan application will go through immediately.
In this respect, while most banks and NBFCs need to stand in queues over long waiting hours, companies like Bajaj Finserv offer hassle-free loan disbursal with minimum documentation. Also, they provide doorstep service for submitting your documents and have a quick processing time of only 72 hours.
The Flexibility of Use
Another benefit of availing a LAP is the flexibility to utilise the funds according to your requirements. Banks and NBFCs do not restrict the use of the money. You can use the funds for anything from financing a wedding to expanding your business.
It also opens the option to consolidate your existing loans. Low-interest rates and high tenor period are the perfect reason why a loan against property helps you consolidate your existing debts.
Continued Ownership
Unlike a home loan, where you do not receive the ownership of the property unless the loan is paid in full, loan against property does not take the ownership of the collateral from you.
If under any circumstance, you are unable to repay the loan, you can sell your property and use that money to repay the balance amount to the bank. Such a feature gives you the freedom to have an option to clear the loan if an issue arises.
Low Interest Rates
Loan against property is also attractive for their low-interest rates. LAP Interest rates are always lower than personal loan. Interest rates of a personal loan are more than almost 1.49% to 10.25% from a loan against land property.
Whether you need money for your child’s education or growing your business, a loan against property gives you the power to tackle all your financial problems. Also, with financial institutions like Bajaj Finserv bringing pre-approved offers for your loans and EMI financing, you can simplify your financing process and save your precious time.
With only a few clicks and some basic details, you will be able to Check Pre-Approved Offer for loan against property.
For Additional Read Visit: 4 Reasons Why A Loan Against Property Helps In Consolidating Existing Debts
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