In today’s scenario, taking a loan is an excellent way to finance goals that require a substantial sum. In fact, the benefits of repaying credit far outweigh the cost, as long as you pick a loan that suits your requirements. In your search, you will find that unsecured options offer funds without collateral, however they carry a higher interest rate, increasing the total cost of borrowing. A cost-effective alternative is a secured loan such as a loan against property.
While this option does require you to pledge property as collateral, the benefits are ample and the interest rate is low. While many believe that it’s risky to pledge property, note that there is absolutely no risk attached to this loan as long as you make repayments on time. In fact, you can continue to use the property through the tenure.
Take a closer look at how this loan variant is beneficial.
Get A High Sanction
Due to the secured nature of a loan against property, lenders evaluate the market value of the collateral and sanction a loan based on a loan-to-value ratio. Generally, if your property has high market value, you enjoy a high sanction. However, this is also dependent on the lender and your financial profile at the time of application.
To enjoy a generous loan, borrow a Bajaj Finserv Loan Against Property as you can get up to Rs. 10.50 Crore* as a salaried individual and up to Rs. 10.50 Crore* if you are self-employed, so you can meet any financial need easily.
Repay Affordably Thanks To Low Interest Rates
A key benefit of borrowing a loan against property is that you enjoy a low interest rate. As a result, you can borrow a large sum of money and repay mortgage loan affordably without worrying about the cost. Affordable interest also helps you manage cash flow efficiently all through the tenure. The Bajaj Finserv Loan Against Property offers one of the best interest rates in the country, ensuring that your finances aren’t hampered in any way.
Opt For A Long Tenure To Ease Repayment
A long tenure is essential for repayment, especially for a large sanction. For this reason, a loan against property comes with a tenure that spans over a decade so that you can enjoy nominal EMIs that don’t cause financial stress. You can opt for a long tenure for loan against property on the basis of what you can afford. A long tenures means lower EMIs but higher total interest payment, while a shorter tenure results in higher EMIs, but allows you to clear your loan quicker.
Bajaj Finserv allows you to opt for a tenure of up to 15 years so that you can repay the loan as per your convenience. You can also use the EMI calculator before you borrow to determine a loan amount and tenure that result in pocket-friendly EMIs.
Enjoy Tax Benefits Depending On Usage
When you borrow a loan against property, you enjoy tax benefits on mortgage interest payments only. However, to claim deductions, you must be able to prove that the sanction was used for either business expenses, or to buy residential property. Section 37(1) of the IT Act of 1961 oversees business expense claims and Section 24(B) of the IT Act applies to individuals who purchase residential property.
Avail Flexi Facilities
Flexi facilities are unique to the Mortgage Loan. Via this feature, you can borrow funds as per your need and pay interest only on the amount utilised. You can also pay interest only EMIs all through the tenure of your loan and repay the principal at the end. This allows you to efficiently manage cash flow throughout and devote funds to more pressing needs using Flexi Hybrid Loan Against Property, should they arise.
All of these features work in your favour and make this loan a good one for almost every need. Moreover, to get started, simply check your pre-approved offer. Apply using a tailored deal for quicker approval and disbursal.
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