Thursday, February 14, 2019

Loan Against Property – 10 Vital FAQs Answered

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Do you need some urgent funds? Do you have a house? You can apply for a loan against property and fulfil all your essential and big-ticket needs.

However, before you could apply for it, there may be some questions that you may want to be answered. To help you get answers to some vital questions, we have clubbed some loan against property FAQs to help you know more. Read on!


1)    What is a Loan Against Property?

As the name suggests, the loan against property is a facility that helps you access a bigger amount after pledging your property. As a result, the loan becomes secured, and you can enjoy a lower loan against property interest rate.

2)    For What Purposes you can Use the Loan?

The loan against property works like a personal loan. You are free to use it for covering diverse needs. Be it the business expansion, marriage, medical emergency and beyond; you can use the loan amount for many purposes.

3)    Can a Salaried Person in Gurgaon go for a Loan Against Property?

A salaried person is entitled to apply for the loan against property facility. However, the property that he/she wishes to pledge should exist in a city as in a lender’s list. Hence, before applying for the loan, you need to check the list of cities available on the webpage of the lender.

4)    Can a Self-Employed Person apply for Loan Against Property?

Yes, a self-employed person can also apply for the loan against property. However, before applying, he/she should check the eligibility conditions to avoid rejections.

5)    Do You Need To Mention The Purpose Of Availing The Loan?

Most of the leading banks and non-banking finance companies (NBFCs) don’t want you to specify the purpose behind the application of loan against property.

6)    Can A Commercial Property Be Treated As Collateral For The Loan?

Yes. Both commercial as well residential properties are collateral for the loan against property.


7)    What Is The Quantum Of The Loan That You Will Get?

For the loan against property, around 50-70% value of the pledged property is what is generally offered as the loan. However, the quantum of the loan differs from lender to lender. It is good to be sure of it because you may have the requirement for a bigger loan amount which you may not avail.     

8)    What Is The Maximum Amount That One Can Avail?

Here is what a person can avail as per his financial profile. Have a look:

Salaried professional – Up to Rs.1 crore

Self-employed personnel – Up to Rs.3.5 crore

The mentioned amount may go up and come down as per your eligibility and the terms and conditions of your prospective lender.

9)    What About The Taxation Benefits On Loan Against Property?

Unlike the home loan, the EMI payments for this loan have no entitlement for the salaried professional to save taxes. On the other hand, a self-employed person can claim income tax deductions on paid interest amount. The only thing is that he/she would need to prove that he used the loan funds to improve his/her business.

10)  How Is The Valuation Of ‘to Be Mortgaged Property’ Conducted?

Your prospective bank or non-banking finance company (NBFC) will conduct a formal property valuation process. It will be conducted to determine its final value.

Do you want some large amount to fund your multiple needs without paying a higher loan rate? You can easily apply for the loan against property online. By sharing your basic personal details like name and mobile number, you can quickly check out your pre-approved loan deals today only! 

Bajaj Finserv provides some remarkable pre-approved offers on loan against property, home loans, personal loans, business loans and a lot more. Going for such schemes will assist you to go through the loan formalities fast and hassle-free.

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Author: verified_user

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