How can you benefit from Loan Against Property?
Dreams are something that inspire us to wake up every morning and carry on with our tasks. At times, to realize your dream, all it takes is a little financial push. If you’re in need of a financial backing to kickstart your dreams, loan against property is an ideal way to go.
Loan Against Property is a great way to harness the power of your property. Here, the borrower is required to pledge their property to borrow a sum of money. The property that is going to be pledged can be a commercial or a residential one. Since loan against property is a secured loan, the interest rates are generally lower when compared to other loans.
Pay at your pace
Since loan against property is a secured long-term loan, most lenders will offer up to 15 years to repay the loan. Since the tenure is long, you can opt for pocket-friendly EMIs and pay back to your lender at the pace you’re comfortable with.
Your Property, Your Right
Even after the property is pledged to avail yourself of the loan, the ownership of the property will remain with you. While it serves as a mortgage to the loan, it can still be profitable to you. You can make money out of your property by renting it out if it is a residential one or carrying out your business if it is a commercial one. Either way, you will have full control over the property except for selling it.
Higher Sanction Amount
One of the biggest benefits of opting for a loan against property is that you will be eligible to borrow a bigger sum of money. Most lenders will offer around two-thirds of the property value. The documents involved in this type of loan are very minimal. Identity proof, Address proof, Income proof and Property documents will suffice.
Relish Lower Interest Rates
In loan against property, lenders have the right to make a legal claim of the pledged property if there are any irregularities in repayment. Since the risk involved is low, the lenders will be happy to offer a lower interest rate. Without a doubt, a lower interest rate will save you a massive sum of money in the longer run.
To sum things up
If you’ve made it till here, Congratulations! You now know what you’re getting while availing of a loan against your property. Now harness the power of your property through Cholamandalam.com