Know More about Loan Against Property

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Loan Against Property
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What is a Loan Against Property?
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A loan against property is a type of secured loan
where the borrower uses their property as
collateral in exchange for a loan. The property
could be a residential or commercial property,
or a piece of land that is owned by the borrower.
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Benefits of Loan Against Property

1. Lower interest rates Since the loan is secured
   by property, lenders generally offer lower
   interest rates on loan against property compared
   to unsecured loans.
2. Higher loan amount Loan against property offers
   a higher loan amount compared to unsecured
   loans, which can be useful for financing
   big-ticket expenses.
3. Longer repayment tenure The repayment tenure for
   loan against

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property is typically longer than other types of
loans, which can
help in managing cash flow and reducing monthly
repayment
amounts.
4. Flexible end-use Loan against property offers
flexibility in terms of
the end-use of the loan amount. The funds can be
used for various
purposes such as funding a business, home
renovation, education,
medical expenses, or debt consolidation.
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How to Apply for a Loan Against Property?

• Check eligibility The first step is to check the
  eligibility criteria set by the lender for loan
  against property.
• Choose a lender Research and compare different
  lenders offering loan against property,
  including interest rates, loan tenure,
  processing fees, and other terms and conditions
• Gather documents Prepare the required documents
  for the loan application process. This typically
  includes identity proof, address proof, property
  documents, income proof, employment proof, and
  bank statements.

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Submit application Submit the loan application
form along with
the required documents to the lender.
Await approval The lender will verify the
information provided and
assess the value of the property being used as
collateral.
Disbursement of funds Upon acceptance of the
loan offer, the
lender will disburse the loan amount directly to
the borrower's
bank account or in the form of a demand draft.
Mortgage creation The lender will create a
mortgage on the
property being used as collateral.
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Thank You
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