Whenever we are in need for funds, the first thing that comes to mind is to apply for a loan with a reliable lender. Getting access to funds is not easy and it involves a stringent procedure. If you are in immediate need for funds and own a property, you can easily get a loan against the same. Loan against properties  is the first choice of many business owners in the country. In order to apply for the loan, you need to hypothecate a property of your choice. The property should be under your name and if there are co-owners, they will become co-applicants to the loan. You can use any property for the purpose. It can be residential or commercial property that is in use, vacant, rented or leased out.

Known as a secured loan, it allows you to get quick access to funds based on the market value of the property. When you apply for the loan, the lender will hire a market valuer to estimate the current market value of the property. Your loan amount will depend on the same. If the value of the property is high, the loan amount will be high. You need to remember that the entire value of the property will not be your loan amount. This means you will get a loan amount of doubt 60% to 70% of the market value.

Consider your requirements and then approach the lender. You need to scout the market for reliable lenders in the industry. Compare the interest rates offered by different lenders and then make a choice. A low-interest loan will reduce the EMI amount and will make it easier for you to make the repayment on time. Since you are hypothecating the property, the risk on the loan will be less and you will be able to enjoy low interest rates.

In order to apply for the loan, you need to fill the application form and submit documents of identity proof, address proof, bank statements, ITR, business registration documents, proof of going concern of the business, and income statement and balance sheet. With a good credit score , you can enjoy low interest rate and flexible repayment tenure.

A huge advantage of the loan is that you can use any property for the purpose. There are no restrictions on the end use of the funds and once you make repayment of the loan, the property will be transferred back to you. Prepare a repayment schedule to ensure timely payment of dues. If you default in the repayment, the lender has a right to take ownership of the property and auction it to recover the outstanding funds. Hence, agree on an EMI amount after considering the monthly inflow and outflow of funds. Understand the terms and conditions of the loan against properties and then proceed with the application. The loan will help fulfill your needs and will take the business to new heights. Choose a reliable lender as your partner in growth.

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