In this day and age, a host of loans are provided by banks so that we can use the cash for various purposes. It can be a vehicle, a house, or a loan for any business venture etc. A relatively popular loan is the Loan Against Property which is essentially a mortgage. This type of loan is popular amongst borrowers as it allows you a large sum of money for any need or challenge that you might incur. Another attractive part of this loan is that it has easy documentation/loan against property eligibility and very flexible repayments. Add to that speedy approvals, and one can surely guess why many apply for a loan against property.

In the loan, the property is put up as a collateral or security. The state defines a loan against property as only a transfer of interest and not the ownership. It means that the borrower remains the owner of the property and the transfer of ownership will happen if the borrower defaults on the loan repayments.

The loan against property eligibility includes the proof of residence, income statement, latest bank statement. If you are an employee, you need the last six months’ salary slips. If you are a business owner, you might need to show at least three years of income before your loan is approved.

The key benefits of having a loan against property:

1. Lower interest rates
2. Good while availing more massive amounts
3. Low EMI due to longer tenure
4. The Flexibility of how you use your loan

Must Read: Advantages of Loan Against Property to Raise Funds