Why should you utilize your property to grow your business?
India is one of the fastest growing economies in the world. With abundant natural resources, skilled work force and technological advancements, India is proving to be a land of opportunities for entrepreneurs across the country and investors around the world. This gives budding entrepreneurs the confidence to plunge into the market and explore their opportunities. However, lack of timely funds is always a challenge. This is where Chola Loan Against Property comes into play.
Loan against property is a type of secured long-term loan where one needs to pledge their property as collateral and borrow money against it.
Initial Capital
Loan against property is a great way to arrange the initial capital to start your business. Since you’re using your own property to avail the loan, you wouldn’t feel the burden of an unsecured loan. The good part about loan against property is that one can utilize the property to generate revenue when it is being used as a collateral.
Lesser Interest Rate
The interest rate of loans against property are usually lesser than the unsecured loans. Choose your interest rates wisely as it may make a bigger impact in the longer run. A loan with a lesser interest rate will save you a bigger sum over a period of time.
Property Value and Loan Amount
Carefully analyse the value of your property before choosing the loan amount. Most lenders will offer around 3/4th of the value of the property with consideration of the market circumstances. In some cases, you may not need that much amount. In such cases, choose the amount you require and not the amount the lender offers. You can calculate your tentative Equated Monthly Instalment (EMI) via the EMI calculator available on Chola website.
Business Expansion
Changing times demand updated machinery and working capital to keep up with the market. If you’re looking to expand your business and don’t want to compromise on your existing assets, loan against property is a great choice to have. You can use your business property or any other residential property of yours to enhance your business. Once you start generating profits, it wouldn’t be hard to close off your loan even earlier than you promised.