The COVID-19 Pandemic has crippled the lives of many people in India and across the world. During the lockdown, the earnings of many people have reduced. Hence, for many, it may have become tough to raise money and cover different needs.
But, if you have a property, you can now use it to your advantage. It is because a unique facility of loan against property is nowadays available. It is among the low-cost options offered by known banks and non-banking finance companies (NBFCs).
Opting for the loan against property comes with the possible lowest interest rate.
Let’s explore how the loan against property is a viable option to raise money amid the Pandemic!
What is a loan against property?
The loan against property is a secured option offered by reputed financial institutions in India. The collateral, in this case, is the property of the loan applicant.
Hence, the loan against property interest rate is affordable. In turn, it helps the loan borrower to repay reduced EMIs and save huge.
From debt consolidation to marriages to children’s education to business expansions to medical emergency and more, the funds out of loan against property could be used. Lenders usually place no restrictions on the way you use the loan amount.
What are the benefits of applying for a loan against property?
Applying for a loan against property with a known creditor in India can help you make the most of many advantages. Let’s take a look:
- A high-value loan made possible
You can avail of an amount of high value loan for both salaried and self-employed.
- Low cost option
It is among the low-cost options because the funds are disbursed against your property’s value. Lenders charge a lower loan against property interest rate as there is collateral already involved. It leads to affordable repayments.
- Easy to meet eligibility terms
The loan against property eligibility norms of lenders is not complex and easy to meet. It comes with minimal documentation. In turn, it makes the application procedure super simple. You can also stay safe at your home during the COVID-19 Pandemic. It is because known lenders get your loan documents picked from your doorsteps. It makes the loan against property even more hassle-free.
- Quick disbursal
Once an applicant gets the approval for a loan against property, lenders don’t take much time to credit the loan amount into their bank accounts. Top creditors in India take up to 72 hours to disburse the loan money.
- Flexible repayment tenor
Applying for the loan against property does not mean repaying over a shorter tenor and hurting your outlays. Salaried loan candidates can get a repayment tenor of up to 20 years, while self-employed personnel are given up to 18 years to repay.
- Online account management
Once you apply for the loan, you don’t have to risk yourself to the surging Coronavirus infection to know your loan progress. The facility is made available on a lender’s customer portal. Here, you can learn about your outstanding loan amount; total EMIs paid, and number of remaining EMIs and more.
Do you need a significant loan amount without paying higher interest charges? The loan against property is one of the best low cost options available. You can easily use your property to your advantage and get a higher amount at an affordable rate.
How to apply for a loan against property?
Applying for the loan against property is easy if you can follow a few basic steps:
- Navigate to the loan against property page on your lender’s website and open the loan application form.
- Enter your personal details, such as your name, date of birth, correct address and contact details.
- Provide your income details for a lender to provide you with the best offer matching your financial conditions the most.
- Submit the loan application form. Once done, a lender representative will get in touch with you shortly to take this forward.
These are standard procedure to apply for a loan against property. It may vary from lenders to lenders. Hence, the exact details should be checked in advance on the lender’s website you wish to apply for the loan with.
If you face a fund shortage and want to cover it at a lower cost, then the loan against property is an affordable solution.