Loan Against Property – A Quick Guide
A loan against property is something where a borrower will pledge their property as collateral to avail a loan. The property can be a commercial as well as a residential one. Since loan against property is a secured loan, the interest rates are generally lower when compared to other loans.
In this article, let us have a quick overview of how loan against property works. If you’re thinking about availing one, you are in the right place.
Eligibility
The value of the property that is to be pledged is the priority when you’re availing loan against property. Factors like age and location of the property will also play a vital role. If you’re looking to start a business by availing the loan, your profit feasibility will also be looked into by the lender.
Purpose of Loan Against Property
You can avail a loan against your residential or commercial Property for business purposes.
Documents required
Documents are the centre piece of any loan application process. Following are the documents required to avail yourself a loan against your property.
- Proof of residence (Aadhaar, Voter ID, Driving License, etc.)
- Proof of identity (Aadhaar, Voter ID, Driving License, etc.)
- Certified/latest financial documents
- Copies of all property documents
Property insurance
You should have to properly insure your property against fire hazards, theft, natural calamities, etc. during the tenure of the loan. The proof of this needs to be submitted to the lender during the loan application process.
Interest rate
The interest rates on loan against property is low when compared to other unsecured loans. However, your interest rate will vary in accordance with the value of the property, loan amount, tenure, credit score and income of the lender during the time of loan application.
Wrapping up
Loan against property is a great option to avail a loan in times of financial emergency without losing ownership of the property. At Chola, we provide quick loans against property to help our customers meet their financial need with ease. Collaterals ranging from residential properties to commercial ones are accepted in Chola. To avail Chola loan against property, just give a missed call to us at 07949130412.