Customers who own property have a major advantage of utilizing it to get financial assistance for their immediate needs like expanding business, marriage, higher studies, vacation, and medical treatments.

The advantage of choosing a loan against property against other loans are they are cheaper than personal loans, longer tenure, lower EMI and simpler documentation and faster approvals.

Percentage of Loans varies for residential and commercial properties, and the rate of interest varies from 9.75% to 10.50% for amounts ranging from 5 lakhs to 75 lakhs and above.

Age – 21-65 years

Profession – Self-employed / Salaried

Resident – Indian

Advantages of Loan against property

The Loan is available against a self-occupied residential property, such as a house, apartment, flat, etc. It is also provided against rented residential properties. It is available by mortgaging commercial properties like office buildings, malls, shopping complexes, shops, etc. It can be taken against a plot of land owned by the borrower. It comes with a lower interest rate and adjustable tenure compared to personal loans. Tax benefits are provided for customers to reduce the burden of loans.

This is the most common loan taken by a borrower to fulfil any business and personal needs, which may include loans for:

Business expansion, acquiring assets, and for marriage or any medical emergency.

The lowest interest charged on Loan against property is 7.50%. All banks and NBFCs provide property loans for these purposes: for Loans against a residential property, while only selected banks offer loans against commercial property. Financing companies are typically more open to extend loans against residential property. Very few NBFCs and banks offer loans against industrial property.

Overdraft facility is availed by the borrowers who expect to have surplus income or changing income during the year. This facility allows you to deposit the excess amount for any period, which can be as short as few days in your Loan against property account and reduce your interest liability. This option is highly suitable for self-employed business people or professionals who have fluctuating funds requirements throughout the year.

Loan is an additional loan amount that you can avail of on your existing Loan against property. Top-up can be taken either from the existing bank or can be availed at the time of transferring your outstanding property loan amount from one bank to other banks to avail low-interest rates. Loan against property is applied to calculate your eligibility on a loan amount. This means that the amount of top-up Loan plus your existing mortgage loan outstanding should be less than or equal to 70% of the market value of the property. Top up amount eligibility may vary from bank to bank based on your income and value of the property and needs a thorough comparison.