A loan against property has no end-usage restriction and thus can be utilised for personal needs such as fund higher education, meet medical expenses or financing a wedding. You can also use the amount to cater to business expenses such as meet the cost of infrastructure, purchase raw materials, upgrade your business, etc. It is crucial on your part to have a thorough knowledge of a property loan before you avail one to avoid problems with your credit.
Read below to know some details associated with a loan against property:
You have to provide the documents mentioned below to apply for this loan:
- KYC documents such as your Aadhaar card, PAN card, Voter Id, Driving license, passport, etc.
- Address proof such as latest electricity bill, telephone bill, water bill, gas bill, life insurance policy, etc.
- Copy of the mortgaged property papers
Self-employed individuals have to provide business proof documents such as partnership deed, GST registration certificate, SSI registration certificate, SEBI registration certificate, etc. in addition to the above ones.
Similarly, salaried customers have to provide income proof such as bank account statements, profit and loss statements, income tax returns, etc.
Bajaj Finserv is such an NBFC that needs you to provide only the above few documents to sanction a Loan Against Property. The company provides loans up to Rs. 3.5 Crore with tenors ranging up to 20 years. You also don’t have to pay any part-payment or foreclosure charges if you are paying a floating rate of interest. They also offer balance transfer facility, online account access, flexible EMI tenor, instant approval, etc.
Bajaj Finserv has also introduced pre-approved offers to make the application process hassle-free and fast. These pre-approved offers are available on secured loans like home loans and unsecured credits such as business loans and personal loans. You can check your pre-approved offer by sharing minimal details like your name and phone number.
- Eligibility Criteria
For availing such loans, you will require a CIBIL score of 750 or above. You can maintain your CIBIL score by ensuring that you do not default on your loan against property and by debt consolidation. Also, you will have to fulfil some other loan against property eligibility criteria as mentioned below.
For a self-employed individual
- Your age should be between 25 and 70 years
- You should hold a considerable regular source of income
- You should be residing in India
For a salaried individual
- Your age should range between 33 and 58 years
- You should have a significant salary and should be an employee of a private or public sector or any MNC
- You should hold the citizenship of India
- Tax Benefits
You also get to enjoy tax benefits on your property loan, depending on the end-usage of the amount. Purchasing another property or using the amount to fund higher education needs are some of the ways how you can avail tax benefits on your loan against property.
- Type of Mortgaged Property
You can mortgage several types of assets when you apply for a loan against property. These assets include residential as well as commercial properties. Several other assets that you can also take a loan against include gold jewellery, gold bars, gold biscuits or gold coins.
- Fees and Charges
Apart from the interest rate, there are other additional charges associated with your property loan that you should be aware of. These charges include processing fees, administration charges, EMI bounce or late payment fees, part-payment or foreclosure charges, etc.
The application process of these loans is also simplistic and hassle-free. To apply for such credits, you will have to visit your lender’s official website. After you have visited the official site, select the ‘loan against property apply online’ option to fill out an application form. You will have to share some crucial details such as your name, address, date of birth, income details, contact details, etc. Once you submit the application form, make sure to keep a digital copy of it for future references.
Apart from the points mentioned above, you should also gather knowledge on a loan against property process. Also, inquire your lender about the disbursal process, and the time they would require before transferring the amount to your account.