Whether your business is new and you need money to give it the right push, or you have a stable business and need money for expansion or debt consolidation, a loan against property can be the most cost-effective solution. Arranging funds can be especially harrowing for a businessperson launching a new business. A loan against property can be your best bet in such situations.
Loans against property, also known as home mortgage loans, are uncomplicated loans that have wide functionality. Unlike other loans, home mortgage loansare not linked to the end-use, which means you can avail of the loan and use the money for any purpose. The lender will never ask how you plan to use the loan amount. Hence, you can use the loan amount for purchasing or leasing a property, pay government fees, acquire materials, hire employees, or anything you feel is important.
What Are Home Mortgage Loans?
Home mortgage loans are secured loans that businesspersons can avail of by pledging their property with the lender. The property may be residential or commercial. Additionally, businesspersons can mortgage a self-occupied, vacant, or rented property. A businessperson needs to submit the original property papers, including title deed, occupancy certificate, approved plan, etc., which will remain in the lender’s possession until the borrower repays the principal and interest in full. At any stage, if the borrower stops the EMI payment, the lender will send repeated reminders to repay. If, after repeated reminders, the borrower does not clear off the dues, the lender may initiate liquidity proceedings. However, if you take home mortgage loansseriously, they can provide you with unlimited funds at unparalleled interestrates.
Five Reasons You Choose Home Mortgage Loans to Start Your Business
For a business person, capital and time are equally important. If you get the right funds at an appropriate time, your business can soar to new heights. However, if money plays a spoilsport, you cannot fuel your business ambitions.
Home mortgage loansfrom reputed lenders, such as PNB Housing Finance, bring several advantages for business persons willing to make their mark in business.
The following are a few features of home mortgage loans:
1. Quick Approval
Since lenders approve home mortgage loans against an asset, they approve it quickly. You can conveniently open the lender’s website, fill in a few personal details, and apply for the loan. Usually, the lender sends a loan officer to the registered address at your convenience. The officer verifies the original documents and inspects the property. On satisfactory evaluation, they approve the loan. The lender transfers the home mortgage loanamount to your bank account within twenty-four hours.
2. Easy Eligibility
Unlike most other loans, a home mortgage loan’seligibility is straightforward and uncomplicated. It helps if you have a credit score above 800, although it is not a mandatory requirement. Remember, your property must be free from disputes, and your age should be between 21 and 55 (for salaried professionals) and 60 (for self-employed professionals/non-professionals).
3. Low Interest Rates
A homemortgage loan offersthe lowestinterestrate you can get as a new businessperson. The lender may seek information about your credit score, monthly disposable income, age, and property location to decide the mortgage loan interest rate. If your credit score is above 800 and your income is stable, you may get home mortgage loansat 9.50%. Hence, home mortgage loansare best suited when you need urgent money at a low interest rate.
4. Simple Documentation
Home mortgage loans not only come with the lowest rates but also require fewer documents. You will need to submit documents like age proof, residence proof, income proof, bank account statement, Income Tax Returns, property papers, processing fee cheque, and a photograph, along with the application form. Remember to verify the list with the lender before arranging the documents. Lenders may ask you to submit a few more documents in addition to the ones mentioned above.
5. Convenient Application Process
Lenders, such as PNB Housing Finance, provide several free tools like eligibility calculator and EMI calculator to help you discover everything you want to know about home mortgage loans. You can apply in two ways – online or offline. The online mode is more convenient than the offline mode.
Conclusion
Home mortgage loansfrom reputed lenders like PNB Housing Finance offer you funds for all purposes related to business. Consider your repayment capability before selecting the right tenure. Home mortgage loans usually come with a repayment term of twenty years. If you choose a short tenure, you can clear the debt early. However, a long tenure decreases the EMI amount.
