The funding gap is a problem faced by most start-ups as there is a wide chasm between the number of funds needed and the number of funds available for such companies. While the fund needed is very high, funds are not so easily available. Such lack of funds often demotivate the owners of the company as they are unable to execute their ideas and visions. However, such a problem of the funding gap can be solved by using a loan against property or property loans.

How can a loan against property help?

A loan against property allows the start-up founders to obtain a loan against an asset that is lying idle. Since loans are secured by the property, the banks are willing to give a higher amount of loans at lower rates as compared to personal loans. A high-value property and a respectable credit score can allow you to obtain such loans easily.

Loan against property calculator also is less troublesome for the borrower as interest rates are much lower as compared to the personal loans. This allows for longer tenure loans as well as a reduced financial burden on the entrepreneur. The entrepreneur also has minimal restrictions regarding the usage of such money. A bank might restrict the fund usage in case of a car loan or home loan, however the same is not an issue in case of loan against property.

A loan against property can prove to be the white knight for a beleaguered company and startup. Apart from the lower interest rates, it allows the owner to concentrate on their business and steering it through rough waters.

Additional Read: Here’s How You Can Avail Tax Benefit On Loan Against Property?

FAQs

Do Indian banks/NBFC give a loan against property for doctors?

How does loan against property work?