PURPOSES WHEN LOAN AGAINST PROPERTY COMES HANDY


                


Loan against property is one of the variants of personal loan that is highly preferred form of loan in India and much easily available in banks and NBFC’s. It is the secured loan offered by the financial institutions where properties owned by you can be used as collateral. It can be used for various purposes such as business expansion, wedding in family, medical treatment, leisure vacations and for higher studies of children. In loan against property is mortgaged and a percentage of 70-80% of the prevailing market value of the property is given to the borrower as a loan quantum. They are better options as compared to other financial products due to their comparatively lower rate of interest. ShubhBank provides you the opportunity to grab an offering for the purposes when "Loan Against Propertycomes handy. The most common scenarios when this loan can be helpful are given below:

EXPANSION OF BUSINESS: Every business needs an expansion over a course of time and needs funds for that. The external financing is not always easy as getting into this; you have to enter into sharing agreement, sale of equity etc. that might not always be the desirable solution. In such situations, loan against property is the first choice available at low interest rate and liquidating an asset that might be sitting idle.

DEBT CONSILIDATION: Everyone has to go through emergency expenses as the life is full of uncertainties. The emergency leave us with little to deal with regular bills and in such instances, loan against property can help by enabling debt consolidation. It helps you in a way where your smaller debts are combined into large loan and then you have to make single repayment against loan with its low interest rate.

EDUCATION IN ABROAD: Nowadays education is so competitive and expensive, especially in case where your child is interested in pursuing studies in abroad. Obtaining a loan against property can be effective as there is not much difference between the interest charges applicable to education loan but loan against property provides you a higher loan amount.

WEDDING EXPENSES: The average individual wedding has substantial cost as weddings are an integral part of family. In such cases loan against property offer few advantages over personal loan such as higher loan amount, lower interest rate and longer repayment tenure. It is the better financing option than a personal loan for wedding.

                The eligibility criteria for the salaried individuals and professionals is pretty similar like age of at least 21 years, employed for a specific number of years, regular source of income for repaying and good credit history. We ask for a set of documents such as ID proof, residence proof, salary slip of last 3 months, IT returns, bank statements of last 6 months etc. so taking a loan against property gives you access to immediate funds to deal with the cash crunch in your life. Start with an application process as it is convenient to avail and get a hassle free disbursal with speedy approvals.

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