3 Different Loan Against Property Types You Should Know About resource-Banner_WC
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A Loan Against Property is a secured mode of finance availed against a commercial or residential property kept as collateral with the lender. It can be used to meet a range of expenses, such as business expansion, weddings, and overseas education, seeing as the loan sanction has no end-use restrictions. You can avail of funds worth Rs.5 Crore* or higher, basis eligibility.
Types of Loan Against Property
There are 3 popular types of Loans Against Property available to borrowers in India:
- Loan Against Residential or Commercial Property
If you have a self-occupied residential property, or a commercial property, such as office buildings, shops, malls, complexes, etc., you can use any of them to seek a loan from your lender. You can avail of this type if you need a considerable amount to cater to various personal or business needs, such as financing your child’s education overseas or buying a sizeable asset. The amount you get depends on the worth of the property that you are using as collateral. For instance, your ancestral home is less likely to fetch you a large loan sum, than a recently built house situated in a prime location.
Additional Read: A Guide to Loan against Property for Doctors
- Loan for Purchasing a Commercial Property
If you are an entity planning to expand your business, you might need to purchase a large office space or a factory. If you are a trader, this could even be a warehouse. A Loan Against Property gives you Rs.5 Crore* or more, to help you finance purchase of such nature.
Bajaj Housing Finance offers numerous benefits such as quick approvals, easy eligibility, minimal documentation, flexible prepayment options, flexible tenor and nominal rates of interest on Loans Against Property.
- Lease Rental Discounting
Lease Rental Discounting is a term loan that is offered against an income generating leased out property. If you have a property leased out that fetches a fixed monthly income, the loan is sanctioned after discounting up to almost 90%* of the rental income - using it as the EMI payment.
Before you select any of these options, you should carefully assess your needs and determine which Loan Against Property is most beneficial, given your requirements.
Additional Read: Things to Know Before Applying for a Loan Against Property
Bajaj Housing Finance brings you mortgage loans that are tailored to fulfil the financial needs unique to each borrower. Apply for a Loan Against Property with us and benefit from attractive interest rates and a sizeable loan amount.