PNN
New Delhi [India], July 25: Businesses often need significant funds to scale operations, purchase assets, or manage ongoing financial commitments. One practical way to arrange such funding is by using the value of an owned property. A property loan allows individuals and businesses to raise capital by pledging their residential, commercial, or industrial assets. With a high loan amount and extended repayment flexibility, this financing option can help address various business requirements.
What Makes Property Loans a Suitable Option?
Here are the main reasons that make the property loans a suitable choice for many:
Loan Amount up to ₹15 Crore
Property loans are available to salaried individuals, self-employed professionals, and registered businesses. Depending on the value of the property and applicant eligibility, borrowers can avail of loans up to ₹15 crore. This amount can be used for a wide range of purposes, including business expansion, working capital, or operational improvements.
Funding up to 80% of Property Value
Lenders may offer up to 80% of the property's market value as the loan amount. This applies across property types, including residential and commercial assets. The high loan-to-value ratio allows borrowers to unlock significant funds without selling their property.
Tenure up to 25 Years
Repayment flexibility is another key benefit. With a maximum loan tenure of 25 years, borrowers can plan EMIs in a way that suits their business cash flow. Longer repayment periods often result in lower monthly outflows, helping manage budgets efficiently.
Additional Features That Support Business Needs
Here are additional features of a loan against property offered by the best lenders in the market:
Loan Against Various Properties
Funding is available against multiple types of assets, including:
* Residential property
* Commercial property
* Industrial property
* Plots
* Schools, hospitals, godowns, restaurants, and other business-use properties
This makes the loan accessible to a wide range of individuals and entities holding different kinds of real estate.
Loan Against Rental Income or for Commercial Purchase
Borrowers can avail loans through Lease Rental Discounting (LRD), where funding is based on regular rental income from a leased property. Alternatively, those looking to expand operations can apply for a Loan for Commercial Purchase (LCP) or even a plot purchase. These options provide flexibility to either leverage income or invest in future infrastructure.
Balance Transfer with Top-Up Facility
If you already have a property loan with another lender, you can transfer it to a new lender offering more favourable terms. In addition to reducing your interest burden, a top-up facility may also be available. This allows you to access extra funds over your existing loan limit without going through a new application process.
For those seeking a tailored solution, IDFC FIRST Bank offers property loans of up to ₹15 crore with tenures extending up to 25 years. You can receive up to 80% of your property's value, with the option to transfer an existing loan and avail a top-up at attractive interest rates. Loans are also available against rental income and for commercial property or plot purchases. Use a loan against property EMI calculator to plan your repayments and compare offers before applying.
Conclusion
A loan against property can be a valuable funding tool for businesses aiming to meet large financial needs. With high loan eligibility, extended repayment periods, and multiple property types accepted, this option offers both flexibility and scale. Before applying, review all features carefully and assess your repayment capability based on your business goals.
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