A loan against property lets you pledge an immovable asset that you own as collateral for a high sanction. You can obtain this loan from a bank or a Non-Banking Financial Company. While the bank variant may be a lot more advertised, taking one from an NBFC has its advantages and at times, these supersede the benefits that a bank offers. NBFC loans against property also perform better as they boast of a 15% uptick in customer satisfaction in comparison to those offered by banks.
If you are still on the fence about an NBFC loan against property, here are some of the ways in which it outdoes a bank loan.
Access quicker approval
When it comes to loan processing, you want to ensure that you get substantial funding without long-drawn procedures. This extends to the approval timeline as well, as you do not want to have to wait for weeks to get the funds. When it comes to avail loan against property in India, banks take a significantly longer time to approve of a loan simply because of how strict their lending protocols are. In contrast, NBFCs are more agile. For example, top-tier lender Bajaj Finserv disburses a Loan Against Property of up to Rs.3.5 crore within a few days of application, whereas some banks take over 2 weeks to simply process the loan.
Enjoy lenient loan against property eligibility criteria
NBFCs fall under the Companies Act, and so, the rules that they have to adhere to are not as stringent as those that banks have to. NBFC lenders have taken advantage of this and have relaxed eligibility criteria, making it significantly easier for you to get a loan. Typically, NBFC lenders require you to meet the following requirements if you’re salaried.
- You must be between 33 and 58 years of age
- You must be employed in a public or private organisation
- You must own real estate in any of the major cities in India
In addition to these, you also need to meet the minimum annual income criteria. This amount varies from one lender to another and also depending on the city you reside in. Likewise, lenders have a set of basic requirements that self-employed applicants must adhere to too. Furthermore, the NBFC loan against property documents required are minimal as well. You will need to produce documents that prove your identity, income, address and property ownership.
Get financing with an average credit score
When your CIBIL score is below 600, your odds of getting a loan against property from a bank are slim. If you do get approval, you are likely to get a lower sanction at a higher rate of interest. However, you can definitely apply for a loan against property with an NBFC without these worries. The interest rate charged is higher for those with a low score, but with consistent repayment, this rate can be negotiated in the future.
Enjoy loan against property features such as the Flexi facility
When you opt for a loan against property from a top-tier NBFC, you get to enjoy additional features. For example, you get access to the Flexi Hybrid facility offered by the Bajaj Finserv Loan Against Property. This lets you borrow money from your sanction in parts and only levies interest on the amount you utilise. Moreover, you can pay interest as EMIs for the initial portion of the tenor and then repay the principal to manage your cash flow better. Furthermore, this loan has a comfortable loan against property tenure that goes up to 20 years, making it easy to repay.
As is evident, an NBFC loan against property is a winning option when you’re in need of ample funding.