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Which Secured Finance Is Helpful For SMEs?

· Mortgage Loan,Loan Against Propert,LAP Self Employed

Loan against property is one of the most popular secured finance for businesses. It lets you fund your business against a fixed asset which helps fuel the financial needs of your business. The loan can be customized to suit the financial preferences of eligible borrowers.

The loan can be obtained against a commercial or a residential property. To know more, read below -

  • Substantial Finance: Usually, the lender can offer up to 70% of the market value of the residential property as loan and up to 60% of the market value of the commercial property as loan. Though, the amount and other terms of the loan will differ based on the lender and the individual profile of the applicant.

  • Business Use: Lenders such as NBFCs and financial institutions offer high value loan up to Rs. 3.5 crores for self employed individuals. Borrowers can use the funds to expand business, purchase bulk inventory, hire employees, settle existing business debts and much more.

  • Easy to Repay: A flexible tenure of up to 20 years gives ample time to borrowers to repay the loan conveniently. The repayments of the loan kicks in in the month subsequent to the month in which the loan amount has been disbursed. The borrower can even choose to part-prepay or prepay the loan anytime with minimal charges. With the Flexi Hybrid feature of the loan it can be managed effectively with reduced monthly EMIs. One can pay via CTS compliant Post dated Cheques or via Electronic Clearance System to the lender.

Additional Reads:

How to get Loan Against Property for your Business

How to apply for a Loan Against Property for Business Startup?

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