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Why A Loan Against Property Is Your Best Bet For Funding Personal Expenses!

Published on Aug 9, 2019Updated on Jan 12, 2024

Why A Loan Against Property Is Your Best Bet For Funding Personal Expenses!

Having a home can be a blessing in more ways than one. It gives you a roof over your head, or you could rent it out for additional income. Your hard-earned property can also help obtain a large sum of funds for a significant event. Expenses for personal events such as a milestone birthday, child's higher education or wedding occur suddenly and require arranging funds at short notice. One of the fastest and hassle-free ways to arrange for these funds is to apply for a mortgage loan.

A property loan is a secured loan that disburses funds against property as collateral. The amount of funds disbursed depends on various factors including the current market value of the property, your current income, debt to income ratio, etc.

A loan against property can be your best bet for funding personal expenses because:

  • Funds can be used for any purpose - One of the biggest advantages of a mortgage is that you have the flexibility to utilise the funds for different purposes. Most mortgages in the financial market are limited to a specific purpose and cannot be utilised for any other activity. With a property loan, funds are granted without any restrictions on their use. Typically, 50-60% of the market value of the property is granted. Also, with the right borrower profile, it could stretch to even up to 70%.
  • Flexible loan rates - Interest rate is one of the primary factors that influence the decision of taking a mortgage. Interest rates differ depending on numerous factors including the type of mortgage you apply for. In case of a loan against property, interest rates are minimal. With the right borrower profile and loan features, you can enjoy a competitive loan against property interest rate that is flexible.
  • Extended repayment tenure - Unlike other mortgages, the tenure of this type of mortgage is longer. It could be as long as 15 years. Therefore, you have ample time to earn money and repay the funds.

While applying for a loan against property, you would have to furnish some documents related to your identity, income and property along with your application form. Depending on the verification and processing of application fees, the terms of the loan will be finalised. It is advisable to consult a Relationship Manager to understand better how you can enhance your loan eligibility.

mortgage can help you realise the financial potential of your residential or even your commercial property. You can choose from a range of property loans to meet your individual expenses. Visit a reputed mortgage provider who has a wide reach across the country and a significant network of branches. Their years of experience and expertise will help you obtain a fully personalised mortgage with exclusive features and benefits. They may also offer value additions such as balance transfer and additional finance. Ensure that the financial institution is reliable as they will be in possession of your property documents and records.

* Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG India Credit. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG India Credit's policy at the time of loan application. If you wish to know more about our products and services, please contact us

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