Loan against property is the loan provided by creating mortgage on the property owned by the applicant. Whereas, home loan is provided to purchase a property and mortgage would be created on the property which will be bought by the applicant. Loan against property is useful for unlocking the intrinsic value of the property. It has various benefits over unsecured loan such as lower rate of interest, longer tenure of the loan, lower EMI, overdraft facility and flexibility in the loan amount. This loan can be applied by salaried/ self-employed individual(s) as well as a company.

Bank/NBFC providing this loan takes into consideration financial capability of the applicant as well as market value of the property to be mortgaged. For the applicant crucial factors such as rate of interest of loan against property, loan amount being provided and tenure of the loan, determine the bank/NBFC from which the applicant will avail the loan. Certain other factors such as overdraft facility and partial/complete prepayment condition also play significant role in decision making.

We inform you about various factors of this loan, pros and cons of these factors and hidden potholes. So, you can decide which bank/NBFC loan suits the most to your or your companies requirements.