Availing a Loan Against Property is one of the easiest ways to meet your immediate financial requirements. You can apply for the loan online by pledging your property as security with the lender. It’s possible to avail up to 65% of the cost of the asset as the loan amount. There are numerous benefits of this type of loan, some of which are mentioned below:
Benefits of Loan Against Property
High loan amount
The property pledged as a collateral can be either residential, commercial, or industrial. With some lenders, you can avail of a loan amount of up to 5 crores depending upon the property’s value.
Multipurpose use
The loan amount availed can be utilized for a variety of purposes such as funding kid’s education, home renovation, business setup or expansion, managing wedding expenses, medical costs, etc. Since a Loan Against Property is a secured loan, its approval process is easier as compared to other unsecured loans such as personal loans, student loans, credit cards.
Attractive interest rate
Many lenders offer competitive Loan Against Property interest rates, resulting in lower monthly installments and reduced repayment burden. If you have a high credit score, you can negotiate with the lender for an even more attractive rate and favourable loan terms.
Longer loan tenure
Loan Against Property normally comes with a flexible repayment tenure of up to 15 years. This reduces the financial pressure and helps you repay the loan amount with ease. However, if you wish to save on the overall interest outgo, it’s advisable to close the loan sooner by opting for a shorter tenure. Make sure that your EMIs are affordable while deciding on your loan tenure. You can easily get an estimate of your EMIs by using an online Home Loan EMI calculator.
Low prepayment charges
You can close your loan by making full or part-prepayments towards your loan. Lenders usually charge less prepayment penalty in case of a Loan Against Property.
Make sure that you utilize the loan amount efficiently. Here’s how you can avail a Loan Against Property online from the comfort of your home:
How to Apply for a Loan Against Property?
- Go to the “Loan Against Property” section on Kotak Mahindra Bank’s website, and hit the Apply button
- Fill in the online application form by providing your personal and employment details
- Specify the loan amount and the property details
- The lender will verify your application and get in touch with you shortly to guide you with the further process.
Before applying for a loan, you must check your loan eligibility with the help of an online Loan Against Property eligibility calculator. It’s advisable to avail a loan, only when you are certain that you would be able to repay it within the specified tenure. This is because a Loan Against Property is a secured loan, and in case of a default, the lender reserves the right to seize your property to recover the loss. Lastly, do not forget to read the terms and conditions of the loan agreement carefully to avoid any hassle later.
