A home to live in is one of the three basic necessities of a human being, apart from food and clothes. A home is not the only immovable property you can buy, you can also buy godowns, office space, buildings, farmlands, and many other types. People invest in them for two reasons, it:
Gives them a roof over their heads
Acts as a collateral when there is an urgent monetary need
Monetary needs can be defined as money needed to meet a business expense, pay for a child’s education, meet a medical treatment cost, go for a dream vacation, and any other expenses you are unable to meet from your sources of income. The need can be met by:
Putting up the property on rent,
Selling it
Taking a loan against it.
Taking a loan against a property is the most safest, as it ensures, you remain the owner. The loan amount should be directly dependent on your capability to pay the installments and repay the interest. The Interest Rates on Loan Against Property is quite low in comparison to other loans thus being the best option for everyone. If you are planning to take a loan against property, here are the different types of loans, you can opt for:
Lease against residential, commercial or industrial property - the value of the property is decided and up to 70-80% of the value is extended to the borrower as loan.
Lease rental discounting - A borrower can take a lease against rental receipts. The receipts should be from leased out properties.
Flexi saver loans - The innovative loan requires the borrower to have a healthy cash flow to prepay the loan amount
