Can I Apply For A Loan Against Property To Raise Funds For A Family Function?

Yes, you can! Celebrations and family functions are important occasions that everybody looks forward to. Whether it’s a wedding, the birth of a child or a milestone birthday, these priceless occasions should be celebrated without any compromises. While these events are a great time for the entire family to gather and enjoy together, they can be financially demanding. As a host, you may always have that extra bit of financial stress to make the event a memory you'll never forget. Doubts of whether you have planned well enough to finance the entire event without any hiccups continue to circle as loops in your mind.

In most of these situations, your property can become your source of strength. Many banks and financial institutions offer a loan against residential or commercial property that you can easily avail of to meet significant expenses of a family function. You can harness your property’s financial potential to raise funds to make sure that there are no roadblocks in your special event. Here are some fundamentals you should be aware of while planning a Loan against Property:

• Principal amount: The core of any loan is the principal amount and the same holds true for a Loan against Property. Principal is the loan amount you are eligible for or the sum that the lender will provide with certainty. Further, the amount of the principal differs based on loan type. The advantage of a Loan against Property is that you get an assured amount of funds. This type of a loan guarantees 50-60% of the market value of your property. Additionally, a good financial profile and credit history will make you eligible for a loan amount as high as 70% of your property’s market value.
• Interest rate: The most important factor that you need to look into while applying for a loan is the interest rate. Interest rates help you plan better by calculating the amount of additional funds you would need to repay along with the principal amount. Interest rate depends on several factors including the borrower’s profile and loan type. The interest rate for a Loan against Property depends on multiple factors. However, with the right profile and negotiation.
• Loan Tenure: The tenure of a loan is the period of time you get to repay the funds along with the interest amount and processing fees. A Loan against Property extends for as long as 15 years, which gives you ample time to arrange for repayment. However, as with any loan, the sooner you repay, the lower is the interest you pay.
• Equated Monthly Instalments (EMIs):An EMI is the sum you need to repay every month. An EMI is arrived at after calculating the principal and interest and dividing the same over the loan tenure.

If you are looking to host a family function and wish to raise a Loan against Property, be sure to choose a reputed financial institution that has extensive presence throughout the country. A Loan against Property can be fully tailored to suit your requirements with unique benefits and a range of features such as balance transfer and additional finance. Make sure that your financial partner is equipped to handle your property documents and records with utmost sensitivity and professionalism.