There are many avenues through which an individual may borrow funds in India. One of the primary ways of arranging funds is through loans extended by various financial institutions. This statement is corroborated by the fact that India is now the second most dynamic retail market among the emerging economies, trailing only China by a small margin.
In fact, at 13%, the growth rate of the retail credit industry in India is second to none. Currently, there are approximately Rs. 20 Lakh Crore rupees utilised as loans in India.
Loan against property is a popular choice among borrowers because of the many benefits that it presents. It is a type of secured loan where a property is mortgaged against a certain amount of funds which is provided as the loan. There is a temporary transfer of interest of the property to the lender until the borrower clears his/her debt. The loan against property interest rates is affected by the tenure you choose, so be careful while choosing the tenure.
Where Can One Avail A Loan Against Property?
There are numerous financial institutions including NBFCs which extend loans as per RBI guidelines. NBFCs are increasingly becoming more popular with each passing year. A recent study conveys that customer satisfaction at NBFCs is 15% higher than at traditional lending organisations. The sector as a whole grew by a CAGR of 22% in 2018 despite a marginal slowdown of the economy.
Most of these NBFCs offer loan against property with varying degrees of features. Bajaj Finserv, for example, offers Loans Against Property of up to Rs. 3.5 Crore. These loans come loaded with add-ons to help borrowers repay their loans more easily. Loan against property interest rates are typically lower than other types of loans.
Among numerous other benefits, Bajaj Finserv also provides pre-approved offers which make the process of availing credit simpler and less time-consuming. You may avail these offers on personal loans, home loans, business loans, and various other financial products.
Loan Against Property Eligibility
Availing a loan against property in India from an NBFC like Bajaj Finserv requires you to fulfil some of the most rudimentary eligibility criteria. You simply have to be a resident of India who is employed with any organisation or runs their own business. Employed individuals should be between 33 and 58 years of age, whereas self-employed people should be between 25 and 70 years of age to meet the basic loan against property eligibility.
Loan Against Property Documents Required
Every financial organisation verifies a few documents before extending any loan. Loan against property documents required is minimal including among others:
- KYC documents
- Proof of income (salary slips for salaried people and business pedigree for self-employed individuals)
- Bank statement
- Copy of the documents of the mortgaged property
- IT returns
You can avail a loan against property with a low loan against property interest rates subject to the fulfilment of the eligibility criteria and successful verification of your documents. Note that documentation requirements may vary between lenders.
Additional Read: Things To Know Before Applying For A Loan Against Property
How can Loan Against Property Amount be utilised?
One of the most appealing features of loan against property from NBFCs is that they come with no end-use restrictions. The entire amount is deposited to your account for you utilise as per your needs. Some of the primary reasons why most people avail a loan against property include:
- Higher education fees
- Home renovation/extension costs
- Wedding expenses
- Unplanned medical expenses
- Family vacations
You can also use a loan against property to consolidate all your existing debts. All things considered, NBFCs are fast becoming the most preferred options when it comes to granting loan against property. The trend is clearly in favour of NBFCs, and it is only expected to rise in the coming years.