4 Things You Need to Know Before Applying for a Loan Against Property

1. It is a Secured Loan

Loans against property are secured loans where you need to pledge a property you own, residential or commercial, as collateral for availing the desired funds. Loans against property from banks are known for their stringent procedures and tedious processes. There is a lot of paperwork required during the loan application process.
Additional Read: List of Documents Needed To Apply For A Loan Against Property

2. It is usually for a Long Tenor

Loans against property come with the benefit of having a long repayment tenor. A salaried individual can select a tenor that can range from anywhere between 2 to 20 years. The longer tenor allows you to pay back the loans conveniently and with ease, thus reducing the stress as far as repayment goes. Bajaj Finserv offers interest rates on loan against property competitive interest rates with no hidden charges.

3. It has lower EMIs

Loans against property are usually taken for a longer tenor. As the EMI of a loan is inversely proportional to the tenor, the longer the tenor, lower will be the EMI. Therefore, these loans are ideal for those who are not comfortable with a high EMI amount.
The Flexi Hybrid feature of Bajaj Finserv’s Loan Against Property further lowers the EMI amount as you need to pay only the interest component of the EMIs. Also, the interest is calculated on the amount utilised, and not on the entire loan amount.
Additional Read: How Can You Avail Tax Benefits On Your Loan Against Property

4. Can be taken on Different Property Types

A loan against property or mortgage loan can be taken on many different property types. However, the property should belong to you. Residential, commercial, plot of land and, sometimes even under-construction properties can be put up as collateral.

There are a lot of factors that come into play while sanctioning the loan amount, such as legal clearances, property valuation, etc.