Benefits and Features of a Micro Loan Against Property

by Ajay Singh Financial Advisor

There are several ways a loan can be arranged and MLAP or Micro Loan Against Property is one of the best methods to collect funds for contingencies. Whatever the reason might be - financing your business or a wedding, funding education, meeting health requirements, debt consolidation or even renovating your home, a loan against property aids to many such individual and family circumstances at one go.

What is a Loan Against Property?

There is more to just a mere loan against property. It is a secured loan that is approved through a property pledged with the lender. The borrower’s asset could either be a land, house or a commercial place which is given as collateral to the lender without selling it off until the loan amount is fully repaid. Just as a personal loan, LAP has no restriction of usage but the loan amount can be higher with longer tenure.

After home loan, this loan offers one of the cheapest retails with a low rate of interest and the EMIs work out quite cheaper. The loan eligibility is usually calculated by the property's value and the borrower's income. Therefore, the loan sum is generally greater than any other loan. While personal loans can be availed for up to Rs. 25 lakhs, the Loan Against Property amount can go up to Rs. 1 crore.

What purposes can I take a LAP for?

Loan Against Property has multiple usages and can be taken for the following purposes:

· Enhancing your business

· Sending your children for higher studies overseas

· Renovating your home

· For medical treatments

· Fund a family wedding

· Purchasing raw materials

· Clear past debts

· Any other personal/business needs

The Essentials of a Loan Against Property

Your lender closely examines your income details, employment record, savings and other important elements before agreeing on disbursing your loan amount. You need good financial goodwill before applying for a loan. If you have other loans, your eligibility might get questioned.

Make sure the property offered as collateral is undisputed and the ownership is transparent in the papers or your chances of availing the loan would reduce.

Know the monetary value of your property as the sanctioned amount would not exceed the value of the property.

Clix Capital, Indian’s leading NBFC offers the fastest Loan Against Property in India. Following are some of the Loan Against Property features offered by Clix:

High Loan Amount

Salaried and self-employed can get a loan up to Rs. 1 crore.

Quick Disbursal

You can get your loan processed in 3-4 days and loan amount disbursed in your bank within 3 days.

Favourable Repayment Tenure

Clix Capital provides loan tenure up to 15 years with floating interest rates.

Minimal Documents

Loan Against Property documentation requirement is simple. You can upload your documents online and also get them collected from your doorsteps when you apply for the loan. We require - Complete application form, Passport-size photos, Identity Proof, Address Proof, 3 months salary slip for salaried applicants and the nature of the business, 2 years Income Tax Returns plus bank statements for self-employed individuals.

Simple Eligibility Criteria

Loan against property eligibility criteria is easy to fulfil. The applicant should be above 22 years of age while applying for the loan and below 65 (60 years for salaried) years of age at the end of the tenure.

Easy Balance Transfer

Transfer your outstanding loan balance to Clix Capital by providing only a few documents. You can also avail a high-value top-up loan at the same time.

So, a Loan Against Property is a dream come true! It’s an all-purpose loan for countless things that pop up in life!!! Do you require financial help for education, marriage, healthcare etc? LAP is an easy application process with unlimited use of the fund. Employees, professionals and self-employed individuals who are income taxed and Indian citizens who own residential property or commercial property in their own name or in the name of their spouse or even children.

Parting thoughts

Now that you’ve got a fair idea of availing a LAP, make sure you choose to spend the loan amount wisely. It is always advisable to select the NBFC that is well-known, offers loan against property at the best rate of interest, and delivers a smooth customer support experience.

Clix Capital is one of the leading NBFCs with a varied base of financial assistance, offering easy and customizable repayment options. Feel free to write to us at hello@clix.capital or call us on 1800-200-9898 for any queries.