Articles

The Potential of Loan on Residential Properties

by Hero Fincorp Loans and Small Business Financing
Many times we tend to neglect what we own and look for options in the market. Many business owners do not understand the potential of the property owned by them and look for finance in the market. When you avail finance from external sources, you also have to pay the high interest on the sum. Unlock the potential of your residential property and expand your business with ease.

loan against properties

Loan on residential properties are a go to option for business owners. By placing your property as collateral, you can gain immediate access to funds. The low rate of interest and flexible repayment tenure makes it a widely preferred option. The secured loan can be availed from Banks or financial institutions. The entire process of application is transparent and hassle free. Self-employed individuals as well as business owners are eligible for the loan. The documentation includes identity proof, address proof, income proof and documents of the property. Based on the value of the property, the loan amount will be determined.

Loan on residential properties carry a long tenure of upto 15 years and has a low interest rate. The loan can be used for personal or business purpose and it carries a quick approval. Once you apply for the loan, the financial institution will appoint a valuer who will determine the market value of your property. Based on the value, the loan amount will be decided. Financial institutions usually offer 60% loan on the value of the property. With the long tenure, you will be able to ensure that the monthly installments are always paid on time. In case of a secured loan, the payment of monthly installment is very important. Constant default can lead to the bank owning possession of the property which could be auctioned in the future. It could also have an impact on your credit score.

In case of any other form of loan, your present income will determine the amount of loan. In case of loan against residential property, the value of the property will determine the amount. You can provide the property as collateral even if you are residing in the same or have rented it out. With the security of your property, the risk will come down and the interest rate will also fall. Consider the number of lenders in the market and choose the one that has flexible tenure and low rate of interest. The loan is a quick and hassle free procedure that helps business owners expand their business and achieve the long term goals. The value of the property should be more than INR 50 lakh in order to be eligible for the loan. Whatever the purpose of the loan, you can seek a quick disbursement of the amount and achieve your goals. The loan has various benefits over a business loan and that it why it is preferred by many. They also offer customized solutions in order to meet the financial requirements of the borrowers.

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Created on Feb 15th 2018 04:18. Viewed 478 times.

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