4 Steps to apply for Loan Against Properties
You can use your residential or commercial property to get funds for your business. Whether you want to expand the business reach or provide funds for working capital, you can apply for loan against properties and achieve your goals. No matter the size and type of business you own or the industry you operate in, you can easily grow your business with the right loan. As against the common notion that loan applications are tedious and stressful, you can now apply for a loan from the comfort of your home. The process of loan application is simple and hassle free.
Step 1: At the first step, you need to decide on the loan amount you need and the purpose of borrowing. It will help you decide on the property you can use for the purpose of borrowing. The loan amount will be based on the market value of your property. Hence, estimate the amount of funds you need.
Step 2: You now need to choose the property you wish to hypothecate with the lender. The property should be under your name, and free of mortgage. If there are co-owners of the property, they will become co-applicants for the loan.
Step 3: Scout for lenders in the industry who offer the loan at the best terms and conditions. The best feature of the loan is that there are no restrictions on the end use. You do not need to specify why you need the funds and where you plan to use them. Get information about the eligibility criteria online and choose a lender that offers a loan at a low interest rate.
Step 4: Once you choose a lender, you can make an online loan application. Simply fill up the form online and submit relevant documents. You need to provide an identity proof, address proof, income proof and documents of the property you intend to hypothecate. Once you do this, the lender will hire a market valuer to estimate the market value of your property. The loan amount will be based on the same.
In these four simple steps, you can apply for loan against properties in India. The entire process is simple and convenient. Depending on the amount of funds you need, you can choose a property to hypothecate. You can use a piece of land, or a commercial or residential property for the loan. It can be owned, in use, rented or leased. The loan will help take your business to new heights and will ensure that you make the most of a business opportunity. Several business owners vouch by the loan and have managed to take the business to its potential. You need to prepare a repayment schedule to repay the loan in due time. In case of default in loan repayment, you could end up losing the property. The lender has a right to auction the property to recover outstanding dues. Hence, build a strong credit score by making timely and consistent EMI payments on the loan.
