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How to Avail Loan against Property for Business

By IIFL Home Loans | Published On Jul 06 2023 7:14 AM 1 min read 51 views 827 Likes
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Growing and sustaining your business requires significant effort, financially and otherwise. As a result, if you want to establish or expand a firm, you'll need money. However, if you are a new business owner, you may not be eligible for most loan categories.

In such scenarios, a loan against property remains a sound financial choice. As the name suggests, it is a secured loan which provides funds against your commercial or residential property, which serves as collateral.

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Use loans against the property to secure funds for your business

A loan against property is a popular option since it has various repayment choices and can be used for any purpose. At IIFL Home Loans, we provide business loans against property starting at Rs. 2 lakhs.

What is a Loan Against Property?

The loan against property is a secured loan for individuals. It is like a personal loan in all other respects, except that you must offer collateral to secure the loan. The business loan amount you can avail against the property will depend upon the value of the assets pledged as collateral.

A loan against property for business is a popular option for entrepreneurs looking to obtain financing for their firm because of the following factors:

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Let your collateral property pay for your business needs.
  • Higher Loan Amounts for Busines Property Loan

    The market value of your property determines the value of a business loan against property. Given the high value of real estate in India, you can anticipate receiving a larger loan under this category than any other, as lenders typically offer between 50% and 90% of the property's worth.

  • Longer Business Property Loan Tenure

    Most lenders provide longer payback terms with customisable payment schedules for a business loan against property. This, in turn, aids in reducing the required monthly EMI payments. We at IIFL Home Loans offer loan terms of up to 7 years with our Shakthi Loan and up to 10 years with our Secured Business Loan.

  • Easy-to-Meet Eligibility Criteria

    The eligibility criteria under this category are usually easy to meet. You are welcome to apply for the loan whether you are a salaried or self-employed individual. This is beneficial, especially for new businesses, as loans under this category may be obtained without proof of income.

How to Get a Loan Against Property?

You can apply for a business loan against property in three simple steps with IIFL Home Loans. Here's how:

Step 1: Fill out the online application form with your name, address, date of birth, and contact information.

Step 2: After completing the form, you must provide your identity, address, and income proof for the lender to verify.

Step 3: Post submitting all the required details, our backend team will process your application and sanction the loan.

As we understand your business needs, our Shakthi Loan and Secured Business Loan offer loan approvals within 30 minutes!

Summing Up

You can make an informed decision now that you understand the benefits of a business loan against property, whether self-employed or salaried. You can retain your property even when you take a loan against it. It is possible to keep living there or to use the property for other reasons in addition to utilising it as collateral to secure business funds.

If you are a business owner or an individual looking to start a business, apply with IIFL Home Loans in three simple steps. We offer flexible payment options and competitive interest rates for your business loan against property. So, what are you holding out for? Apply now!

FAQs

1. Can I get a loan against business property?

Yes, you can. Most lenders offer loans against both residential and commercial property.

2. Is a loan against property available as a business loan?

Yes, a loan against property can also be availed as a business loan. At IIFL Home Loans, our secured business loan against property specifically caters to the needs of small businesses.

3. Will my loan against the property be granted without income proof?

Yes, getting your loan against property approved without income proof is possible, provided you submit all our relevant documents.

4. Does a secured business loan against property have tax benefits?

A secured business loan against property offers multiple tax benefits under the Income Tax Act.

5. How long does it take to process a loan against property?

At IIFL Home Loans, our backend team processes your loan against property application within 30 minutes!

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