You can now make the most of your idle property by raising funds on the same. Whether you are a business owner or need a personal loan, you can use your property for the purpose. Getting funds against an asset is not new and the best way to make the most of the investment in your asset is by raising funds on it. Loan against commercial property is one of the most preferred forms of borrowing for business owners in the country. Also known as a secured loan, the loan has a high amount and flexible repayment tenure. You can apply for the loan even if you use the property, it is vacant or you have rented or leased it.
Different lenders have different eligibility criteria for the loan and the first thing you need to do is check whether you are eligible. You can compare the eligibility criteria online before making a decision. Understand the requirements of different lenders and then take a call. Once you decide a lender, you will have to enquire about the interest rates offered by them. You can also compare the rates online. In a loan against commercial property, documentation is very important. You need to have the right documents when you make the application. Hence, after choosing the lender, get a list of all the documents necessary for the loan.
You can then make an online application for the loan by filling up the application form. Most lenders ask for below mentioned documents.
• Identity proof
• Age proof
• Income proof
• Address proof
• Bank statements for the last six months
• Copy of lease agreement in case of lease rental discounting
• Original property documents for the property being pledged
• Passport sized photographs
Once you fill up the application form and submit these documents, your loan application will be processed. The bank will appoint a valuer to estimate the market value of your property and based on the same, the loan amount will be determined. If you want a higher loan amount, you need to use a property which has a high market value. The loan amount will not be 100% of the value of the property. Lenders offer about 70% to 80% of the value as a loan. Hence, consider your fund requirement before making an application. The application will be processed within 10 working days and you will have funds in your account in no time.
It is important to repay the loan against commercial property on time. If you default in the EMI payment, you could end up losing the property to the lender. Hence, prepare a repayment schedule and ensure that the EMI amount will be manageable by you. You need to consider the monthly outflows when making a decision. The loan can help take your business to new heights and it will also help you build a good credit score. With regular payment of EMI, you will be able ensure that your credit score is high.