What Are the Types of Loan Against Property?
Loan against property is steadily becoming the popular choice amongst many people, as it provides credits for longer tenures at relatively lower interest rates. There are various types of loan against property which can be opt for the suitable reasons.
However, the loan amount depends upon the type of property being mortgaged against the loan availed. The type of loan against property can be categorised as follows –
- Loan for Residential or Commercial Purchases- You can easily avail a loan by mortgaging an existing property you own to fund the expenses of purchasing a new one. The new property can be availed for any purpose – whether residential or commercial, depending upon the discretion of the borrower.
- Loan Against Property for Chartered Accountants and Doctors- Loan against property for doctors and chartered accountants can be availed for opening/restructuring business plans, or for financing private affairs.
- Lease Rental Discounting- This type of loan can be availed by the owner of a property, who also acts as the borrower in this case. He avails credit from an NBFC against the rent receivable for his leased property. Only in this case, the monthly rent is paid directly to the NBFC by the tenant.
- Debt Consolidation- You can avail a debt consolidation loan for purposes as well, by merging all outstanding credits under one loan. You can easily calculate your EMI payments, in this case, using a loan against property calculator.
Loan against property is hugely reliable, giving you the freedom to spend the credit amount as and when required. As it is backed up by collateral, the interest burden is considerably lower.