Is It Good to Take a Loan Against Property by a Private Financer

When individuals face financial emergencies, they usually consider redeeming their investments or opting for a loan. However, redeeming the investments may help an individual save money on the payable interest. Nevertheless, it disrupts the long term financial goals of a person. A loan against property is a better alternative to finance expenses in such a crisis. Individuals can apply for a loan against property by private financer or any other lender per their requirements and the benefits they offer.

What Are the Benefits of Opting for a Loan Against Property From a Private Financer?

Opting for a LAP from a private financer helps an individual get approval despite having a low CIBIL score. Further, several private financers offer this credit facility with minimal documentation and fast loan approvals.

Advantages of a loan against property

Here is a list of some of the beneficial aspects of a loan against property over collateral free loans:

As mortgage loans require keeping a residential or commercial property as collateral, the lender’s risk reduces significantly. Hence, an applicant can obtain a sizable amount using this credit facility.

Financial institutions provide long repayment tenors for this loan as the sanctioned amount is secured with the mortgaged property. The lenders hold the right to dispose of the property and recover all unpaid dues in case of any credit default.

Financial institutions provide LAP at lower interest rates. This helps borrowers plan their financial goals per their capabilities Moreover, candidates can easily check their monthly installments using an online EMI calculator.

As per Sections 37(1) and 24(B), a borrower can claim tax benefits for the interest paid for LAP.

A candidate can utilize the obtained loan amount for their professional and personal purposes without any end to end restriction or obligation.

Further, this mortgage loan process of approval requires meeting several eligibility criteria. Hence, it is recommended to check the eligibility criteria before applying for a loan against property.

Documents required to opt for a loan against property in India

Documents required to opt for a loan against property

The documents required to avail of a loan against property are as follows:

Current salary slips (for salaried individuals)

Bank account statements for the last three months

Aadhaar card PAN card

Address proof

The documents of the property that the borrower is mortgaging Income Tax returns (for salaried individuals)

How to apply for a loan against property?

Willing borrowers can easily apply for this credit facility online by following these steps:

Step 1: A candidate must visit the official portal of their preferred lending partner and click on the loan against property option.

Step 2: Then, they need to fill up the application form for LAP and provide their personal, professional and property details.

Step 3: After successfully completing the abovementioned steps, the lending partner will verify the documents and sanction the loan amount.

It is always a good decision to compare the benefits offered by different lenders and then choose the right lending institution to get the most out of this credit instrument. Several lending partners in India extend pre approved offers on their financial products like LAPs, home loans, etc. The exclusive offers fasten the overall application procedure and ensure prompt disbursal of the loan amount. Individuals can easily check their pre approved offers by entering their name and contact details in the required section of their desired lending partner.

However, people in our country are quite emotionally connected with their owned property. This is the reason why many people hesitate to mortgage their property to obtain funds. Keeping a property as collateral gives the lender full right to recover the unpaid dues by making a legal claim against the property. Hence, one should always spend the borrowed money prudently and repay the amount to avoid hassles.