Common Misconceptions about Loan Against Property

Misinformation is a common thing in this digitized world. Often these misleading facts lead to misconceptions that don’t allow people to make the right decisions. Sadly, social media has created a little digital world that can easily convey the wrong information to the masses. People tend to spread information without double-checking it and within minutes it spreads across the globe.

Today let’s put to rest the 5 misconceptions about Loan Against Property.

Only residential property can be mortgaged

Many people think only housing property can be mortgaged. However, it is not the case. Lenders often accept all kinds of residential and commercial properties including office spaces, warehouses, plots, etc. However, the lender would want to make sure the borrower holds the ownership of the property. If the property has joint ownership, the lender would expect all the owners to be on the same page.

You cannot use the pledged property

While the lender holds ownership of the property, you can use it as you wish. This includes renting out your property, carrying out your business, or even staying in it. You can also use the income generated from the property to pay off your EMIs.

A high credit score is mandatory

Since Loan Against Property is a secured loan, lenders will only expect a decent credit score from you. However, at, we offer loans against property at competitive interest rates with slight deviations in credit score. This way, we can cater to the people who are new to credit.

Loan Against Property is risky and expensive

Many people think that the property will be acquired by the lender which is not the case. Just make sure you pay your EMIs on time and do not default any payments and you’ll be perfectly fine. If you fulfil the criteria expected by the lender, Loan Against Property would be the right fit for you. Make sure you pay your EMIs on time and your pledged property will be safe as ever.


Loan Against Property is not as risky as it is perceived by some people. Since it is very flexible, you can alter your tenure as per your requirement and get pocket-friendly EMIs. Cholamandalam Investment and Finance Company Limited offers Loan Against Property for any residential and commercial properties at attractive interest rates. To apply for loans against your property, just visit Chola Loan against property or give a missed call to us at 07949130412 or visit your nearest branch.