Last Updated on March 17, 2023 by Tabraiz
Financial emergencies can occur at any time, and they can’t be avoided. Therefore, you must have a plan or a backup strategy in place that you can use to fund your immediate requirements.
You have several financing avenues out there, but availing of them can be a major challenge as the processing takes a lot of time. Therefore, you must go for a loan against the property. However, before you apply for this loan, know about the loan against a property interest rate.
A loan against property is a very popular form of loan to fund immediate requirements. Therefore, if you have a property you can use it as collateral, and in a couple of days you’ll get the approval and the loan amount will disburse. Read on to know how a loan against the property is used during a financial emergency.
Features of a Loan Against Property
There are several important things that you must know before you apply for a loan against property. Apart from the home loan interest rate today, the other important aspects of a loan against property are:
- It can get up to 65% of the property’s value. Hence, it is a great option to fund big-ticket purchases or other significant expenses.
- These loans are available for self-employed as well as salaried persons. However, before applying for a loan, ensure there are no pre-existing loans against the property.
- The best part of applying for a loan against property is to either borrow the entire amount as a lump sum or take it as an overdraft. However, in both cases, you need to pay back the amount in EMIs.
- A loan against property is a secured loan as you pledge your property as collateral. Therefore, a loan against property interest rate is low compared to other loans.
- You can use a loan against property to fund both planned and unplanned expenses. For example, You can apply for a loan against a property if you want to support surgery or even if you are looking for financing for a wedding function. The purpose of the loan will not affect your application.
- However, you should take this loan if you can guarantee payments. Don’t use a loan against property for risky investments like starting a new business, etc.
How Can a Loan Against Property Help?
A loan against property is the best way to finance your immediate expenses. If you have a major expense falling on your shoulders, you must apply for a loan against your property.
The loan is designed to help people who do not have a corpus currently to fund their expenses. Hence, if you are stuck in a financial emergency, reach out to Kotak and apply for a loan against a property.
There are different ways in which a loan against property can help you in a financial emergency, such as –
- Large Amount: If you have a commercial or residential property under your name, you can take a loan against the same. In most cases, you will receive an amount equivalent to 65% of the property’s market value. Hence, if your financial emergency requires you to make a big payment, you can take a loan against a property.
- Different Repayment Options: The best thing about taking a loan against property is that you don’t have any restrictions on payments. You can either pay your loan back as EMIs, or you can make a lump sum advance payment based on the funds you have with you. You inform your bank how you are about to make the repayments.
- Easy Approvals: Another benefit of applying for a loan against property is that once you provide the property papers, your loan gets approved after verifying the property and the papers. Hence, it only takes a day or two to approve the loan.
A loan against property is the easiest way to help you bear the expenses incurred due to an emergency. Therefore, if you want a loan against property, check the home loan interest rate today and reach out to your bank.