A loan against property is an incredible funding facility that lets you borrow a higher amount of money at a lower rate of interest. Hence, if you have a property or any other real estate properties, you can pledge them to grab a higher loan amount.
The most significant advantage of availing the loan against property is that you can use it just like a personal loan to cover diverse needs.
Hence, when you get an amount as high as up to Rs.3.5 crore, then the sky is the limit to use it and fund many needs.
However, when it comes to availing the loan against property or mortgage loan facility, not many people apply for it.
It is because they are under a misconception that their pledged properties’ ownership goes to lenders. It is a wrong concept!
It is because the pledged properties are only pledged and not that their ownership rights get transferred to banks. Many prospective borrowers also doubt if they can use the loan against the property to settle their credit cards or not.
In the same context, we are here with that will clear your doubt. It will also shed some insights on a list of purposes that you can use it against.
For What Purposes you can Use the Loan Against Property?
A loan against property facility could be used for a variety of uses and purposes. Have a look:
- Funding your Child’s Education
Who does not want to send his/her children overseas or to the best educational institutions or in India? All have such ambitions, and many parents save and invest money in many investment alternatives to do that. However, if you are applying for the loan against property, you can use the amount towards a child’s education.
- Managing your Wedding Expenses
Indian weddings’ preparations keep going until its eleventh hour. Nobody wants to have a dull marriage ceremony as it happens only once in a lifetime. People avail personal loans at a higher rate to fund all marriage needs. However, even applying for the loan against property can help you have the amount at a lower interest rate.
- Business Expansion
Do you want to give wings to your business but unable to do so because of cash crunches? By applying for loan against property, you can quickly get money that you can use towards the business expansions.
- Debt Consolidation (credit card outstanding settlement)
Debt consolidation is also one of the many reasons for people to avail some loans, and the loan against property is no exception. Yes, if you have compiled some debts whose repayment is eating higher interest, you can clear it with the loan against property. And yes, you can go ahead and pay off the credit card outstanding with the loan money.
- Meeting a Medical Emergency
Paying a higher amount of medical bills while battling a medical emergency could also be easy. It is when you have applied for the loan against property.
The borrower has the authority to use the borrowed amount for settling the hospital and other expenses.
When it comes to the usage of money from a loan against property account, you can easily utilize it as per your needs. You can also use it for consolidating your credit card bills and pay just one EMI.
Hence, if you are debt-ridden or have some other personal expenses to meet, you can look to applying for a loan against the property at a lower rate. You can share some of your basic details such as name and contact number to discover your pre-approved loan deals right away!
Bajaj Finserv is here to offer pre-approved offers on loan against property, mortgage loans, personal loans, home loans, business loans and many more. The advantage of opting for it is going through an easier loan processing and disbursal.