The most convenient option for you to meet your personal or business requirements is a loan against property. The most convenient option for you to get a loan easily and quickly be it for your personal or for your business purpose and without much worrying of its approval is a loan against property. It can help you with a variety of purposes such as buying equipment or leasing office space, purchasing a home or renovating your bedroom and other areas, or arranging funds for your child’s wedding or his/her education abroad. Going for a loan against property not only offers you the opportunity to reap tax benefits but also helps you to get a loan at a low rate of interest.
When you go for the loan against property, just keep the following essential points in mind.
Loan to fulfill Business Requirements:
According to the provisions of the Income Tax Act. As per Section 37(1), you can claim the interest that you pay towards the loan against property, along with these incidental expenditures such as processing fees, document charges, etc. Thus, in case you use the funds from a loan against property to finance business expenses, you can claim a tax deduction on the same. You should know that you won’t will not get any benefit on the repayment of the principal amount.
Loan to fulfill the Personal Needs:
A loan against property can offer you several benefits, though tax saving is not one of the advantages you could get out of it. To be sure if you can use your property for the loan against property or not, you need to be aware of the following factors:
- Self-occupied residential property
- Rented residential or commercial property
- Vacant residential or commercial property
- Shared property
Taking the loan is not sufficient. You should know the use of the loan you would get against your property. The following are the uses of a loan against property:
- To buy a residential property
- To buy commercial property
- In the form of a Flexi Loan
- For lease rent discounting
- To arrange funds for personal expenses like a wedding, education, or home renovation
- To finance business-related
expenses like buying assets
How can loan against property be used as a flexi loan?
Loan Against property can be used in the form of a flexi loan as well. In this type of a loan, you can easily withdraw from the total sanctioned amount according to your needs, and this would make you pay interest only on the used-up amount.
Apart from this, you can pay interest-only EMIs, and can pay the principal amount by the end of the loan tenor. You can just withdraw, repay, and redraw funds as per your convenience and as many times as you are willing to do so. This It makes the job simpler for you as you do not need to apply for loan time and again and used the funds as per your needs. You just need to make a request online, and the amount will be disbursed directly to your account.
Since there is not much formality associated with a loan against a property, you can simply go for it. The reason for this is that the loan against property eligibility criteria is minimal and requires almost no major documentation. You can even apply for a loan against a property by following the stated steps below:
- Fill a short online form with basic personal and financial details.
- A representative of the financial institution will reach to you within 24 hours.
- Receive loan approval in 48 hours.
- Submit the necessary documents and get disbursal directly to your account as soon as verification gets completed
By choosing your loan tenor wisely, you can access the benefits of a loan against property, by saving your tax as well as using the loan amount in a calculative manner to make the most of it.