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Fund An Overseas Education
Host An Opulent Wedding
Renovate Your Home
Expand Your Business
Finance A Medical Emergency
Consolidate Existing Debt
A loan against property is a form of secured borrowing that you can use for any purpose you desire. While it is works just like other loans, this financial solution offers you high-value sanction by leveraging the market value of a residential or commercial property you own. Thanks to the large loan amount, which runs up to crores, and the low interest rates, a loan against property is the perfect tool for managing big-ticket expenses.
If you have a healthy credit history, are timely with your payment, and are confident of not missing your EMIs, then there are a few financial options that are better than a LAP. It's a financial instrument where you keep your home or other property as collateral to avail funds. Keeping your home as a collateral should never be a problem if you work according to a fixed repayment plan of the loan. Therefore, it is like any other loan. As compared to other loans, a Loan Against Property is an intelligent financial tool that supports you in the long run and helps maintain stability.
Here are 6 smart ways in which you can use a loan against property to meet your goals, be it family-related or work-centric.
An overseas education exposes you or your child to newer professional avenues, and so, it is an investment worthy of its cost. However, according to The Economic Times, tuition fees for professional programmes can amount to around Rs.15 to Rs.30 lakh in the US and Rs.8 to 18 lakh in the UK. This is apart from the cost of living, which ranges from around Rs.75,000 to Rs.1.1 lakh per month, in both these countries respectively.
Therefore, to fulfill your dream by using studying abroad loan, irrespective of country or course, consider a loan against property as it offers a large sanction that can comfortably cover all costs. Not limited to tuition fees, as is the case with some education loans, this loan helps you meet travel, accommodation and course-related costs without you having to make any compromises.
Celebrating the union of two families, weddings in India are hosted lavishly and cater to a large guest list, with festivities lasting from a few days to a week. Right from expensive traditional and contemporary jewellery and glamorous wedding attires to venue, food and photography, a wedding can cost quite the sum! This amount only increases if you have are planning a destination wedding or looking to have celebrity performers or DJs.
A loan against property can help you secure the amount you need to host a grand wedding as it offers a substantial sanction at an affordable interest rate. While you can opt for personal loan to fund a wedding, a loan against property offers a much greater sanction and a lower interest rate, making it a superior borrowing option.
Additional Read: Affordable Bridal Makeup Packages
Renovating your home is something you must do periodically to preserve its condition. Aside from increasing its value, renovation also helps you customise it to your liking. However, major structural changes such as retiling a roof, remodelling a room, expanding a balcony area or constructing a garage can be heavy on the pocket.
Taking into consideration the cost of labour and materials alongside an interior designers, home improvement can cost lakhs. To avoid having to make compromises or install subpar materials in your home, borrow funds via a loan against property and make use of the ample sanction available.
While it isn’t recommended to set up a business using a loan against property, expanding a business using this loan is something you should consider. You can use the high-value sanction to purchase better machinery, hire more staff, improve inventory management, opt for a better marketing strategy or completely revamp your brand’s offerings.
With clever implementation, you can easily offset the interest with the profits you turn from expansion. Further, a loan against property is easier to acquire and offers a far more suitable interest rate in comparison to it counterparts. It also gives you a large degree of freedom in spending, allowing you to use the finances in whatever way you think best.
Emergencies have a knack for showing up unannounced and if you’re unprepared for them, they can leave a dent in your finances that may be hard to recover from. When it comes to matters of health, quality of treatment is a priority and to acquire it, you need funds. Treatment for surgery or ailments such as cancer or organ failure is very expensive and so, you must have an ample financial backup.
This can be in the form of an emergency fund or insurance. However, if you don’t have either or your insurance doesn’t cover all elements of your treatment, opt for a loan against property and get access to a significant sum with ease and avoid any compromise or delay. An advantage of selecting this loan is that it is easy to apply for and offers a low interest rate.
Also Read: Loan Against Property Prepayment Methods
Using a loan against property to consolidate your debt is a smart financial decision because this loan offers a large sanction that comfortably clear up any unsettled dues. Further, since it is a secured borrowing option, you can benefit from lower interest payments, thereby saving a significant sum of money while clearing up your debt. Combined, the interest rate and sanction offered on a loan against property sets it apart as a debt consolidation loan that is worth considering.
While it may seem like a risk to pledge a property to borrow money, overdue debt may be a far greater threat to your finances. With a long tenure that a loan against property comes with, you can plan your repayment wisely and even make the most of part-prepayment and foreclosure, when you have the funds to do so.
All of the above instances rely on ample funding and a loan against property is an intelligent solution that meets this demand easily. To truly enjoy the benefits of this loan, conduct thorough research on the offers in the market. Besides a sanction and a suitable interest rate, look for value-added features as they add to your borrowing experience.
The Bajaj Finserv Loan Against Property in one such option to consider as it provides a high-value sanction at an attractive interest rate. Via this loan, you can get up to Rs.3.5 crore for a flexible tenure of up to 20 years, thereby allowing you to repay the loan comfortably. Additionally, you can make part-prepayments or foreclose your loan at no additional costs on a floating interest rate loan against property. Lastly, Bajaj Finserv also allows you to take advantage of the Flexi Loan facility. Through this feature, you can borrow from a sanction whenever you require funds and pay interest only on the amount utilised. To get started today, all you have to do is check your pre-approved offer for a tailored deal and enjoy a hassle-free application.
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