For What Loan Against Property Are Used For?
When it comes to leveraging your assets, there are plenty of options you can choose from. For example, if you own a residential property, you can lease it out and earn an additional income. This is a great way to pad your earnings; however, this process is slow and can take a few years to generate a significant amount. Thus, it may not be of use if you need to service an urgent requirement such as a medical treatment that runs into lakhs or your daughter’s overseas education requiring an upfront annual payment. When the goal is to generate a large amount of money quickly, affordably and without having to sell, then your best bet is a loan against property.
This allows you to pledge your property as a security in order to fund big-ticket financial obligations. Going about it is easy as the loan against property eligibility criteria is simple and the interest rates are nominal. Due to the long tenor of these loans, you can also easily build or maintain a healthy credit score all through the repayment window.
To know about the common reasons why borrowers choose a loan against property in India, take a look at the 4 below points mentioned as follows:
- To host a wedding- We all know that weddings are lavish celebrations and this holds especially a special place for an Indian wedding. Most people dream of a grand wedding in their life because it is the thing which happens only once in life. The ceremonies can last several days and in peak wedding seasons, a venue itself can come at quite a premium. Food is another part of the wedding celebration that costs a significant amount, not to mention décor, invites, music and more. These costs can double if you’re planning a destination wedding. In overall, the cost of a wedding is much higher than the expectation of anyone. But if there is an option for you to make your wedding a grand wedding then why to compromise?This is apart from the cost of bridal jewelry, attire, trousseau, and gifts and for family and friends. Thus, it is vital to look for a financial solution that eases the pressure an Indian wedding can put your wallet, and a loan against property is a great fit. The large sanction coupled with a long repayment tenor allows you to fund the special occasion with ease and without compromise!
- To fund a business- When the time comes to launch your business, you may already be aware of the immense financial responsibility that it brings. A startup of a good business needs very costs as for maintaining many things. This includes the setup cost, working capital, funding for incidentals, salary payments, machinery costs, rent and utilities, marketing, and more. Once your business is up and running, you may require funds to expand, open another office, upgrade equipment, travel internationally to meet clients, and more.Whatever the need, your business can exert immense strain on your personal finances, if you’re not smart about how you’re tackling it. Using a loan against property is a great way to fund professional costs comfortably as you can access a large sanction and enjoy easy repayment through long tenors. You can even opt for part-prepayments anytime during the tenor from the profits your business generates.
- To pay for higher education tuition fees- Education is an important pillar in the life of your child. Most of the people can’t afford the costs of higher education for their children. However, tuition fees are no longer what they used to be a decade or two ago. Today, an overseas education will cost you over Rs.15 lakh and this amount is similar to the fees of reputed colleges in India. Naturally, this is a significant sum and does not include accommodation, food, travel and the other essentials your child will need. To fund all such costs comfortably, a loan against property is a tool you can consider employing. The sample sanction coupled with a long tenor and a low-interest rate makes it easy to repay easily. Further, as time progresses, it also lets your child assist you in clearing off the debt.
- To renovate your home- Home renovations or to build a home are both a necessity and a costly affair! While they help you secure your home and make it more comfortable, contributing to its value, in the long run, they can easily run into lakhs or crores due to the requirements of some basic and expensive materials for renovation and also needed the skilled labor. Further, you can never accurately predict the cost of a home renovation and simply get estimates from contractors. However, a loan against property is well designed to financially handle it all. The substantial loan amount lets you budget your renovation comfortably. If you ever feel like you may need more, you can always opt for the Flexi facility offered by Bajaj Finserv and borrow multiple times from a sanctioned limit. You are only charged interest on the amount you utilize, helping you save more, and get the flexibility you need to keep the renovations going smoothly.
As you notice, all of the above options require extensive funding and can pose as a burden if not handled wisely. However, this can be easily mitigated by opting for a loan against property and choosing the right lender. This means that along with nominal interest rates, you also get access to additional features that add value to your borrowing experience.
The Bajaj Finserv Loan Against Property is one such option to consider as it offers some of the most competitive interest rates and features in the market. The application is easy and simplified as the loan against property documents required are minimal and the customer service is prompt. You even benefit from the doorstep service and get a large loan amount of up to Rs.3.5 crore. To get started, check your pre-approved offer online by simply entering your name and phone number.