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3 types of Loans Against Property you should Know About

  • Highlights

  • Avail loans against commercial or residential property

  • Or use the loan to purchase commercial property

  • You can also use a LAP for lease rent discounting

  • Bajaj Finserv offers customised loans against property

A loan against property is a convenient option that you can use to finance a variety of needs. You can use it to pay for your business needs like working capital expenses, tocarry out a balance transfer of an existing home loan, for mortgage buyout and to consolidate debt.

You can also use it for other personal expenses such as financing education or a wedding. To understand this loan better, let’s take a look at its three variants.

Get a Loan Against your Residential or Commercial Property

If you have a residential or commercial property that you already own, you can use this asset to get access to funds. This option is ideal if you need a sizeable amount of finance to cater to various personal or business needs, such as financing your child’s education overseas or buying a high-value asset. The amount you can get via this type of loan depends on the worth of the property that you are submitting as collateral. So, your ancestral home is likely to fetch you a loan of lower amount as opposed to a recently built holiday home in a prime location in Goa.

Get a Loan for Buying a Commercial Property

In some cases,if you are a planning to expand your business, you might need to purchase a large office space or factory. If you’re a trader, this could even be a warehouse. The loan against property gives you up to Rs.5 crore to make your purchase. You can finance the purchase of a new premise for your business conveniently with the Bajaj Finserv Loan Against Property.

The loan offers you numerous benefits like quick approvals, easy eligibility, minimal documentation, flexible prepayment options, flexible tenor and nominal rates of interest on loan against property. It also offers you value-added services related to real estate such as property search services, property dossier and customised insurance schemes.

Additional Read: Understanding The Charges On Your Loan Against Property

Get a loan for lease Rental Discounting:

If you have a property against which you receive rent, you can also sign up for lease rental discounting. During the tenor of the rent agreement, it is understood that you will receive a certain amount of rent on a monthly basis. You can enter into an arrangement with the lender and get funds immediately against the rent that you are to receive. You can use this money to finance your needs without any restriction. The monthly rent that your tenant will give you will go directly to the lender.

But before you select any one of these options,you should carefully examine your needs and determine which loan is most beneficial given your requirements. This will help you make the best use of the loan and ensure that repayment isn’t a burden.

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Understanding the charges on your loan against property