Reasons Self-Employed Individuals Should Consider a Loan Against Property

For those who have put all their money, savings, or even taken out a loan to buy a house or property, it becomes one of their most significant assets. Now that you’ve gone through the effort to purchase or build this property, it’s time to make it work for you.

If you’re self-employed and looking for a substantial amount of money at a lower interest rate, consider a loan against property (LAP) as a helpful option. A loan against property can support you in starting a new business or expanding your current one. Depending on your eligibility, you could borrow up to Rs.3.5 crore as a self-employed person.

If you’re unsure how a loan against property can assist with business startups or expansion, read on to discover some reasons why it might be beneficial.

What is a Loan Against Property?

A loan against property is a great way to secure funding for starting or expanding a business. You can apply for LAP through major banks and non-banking finance companies (NBFCs). This process involves using your residential or commercial property as collateral to access a significant amount of money. Because your property secures the loan, the interest rate is generally lower, making it an affordable choice. This way, you can comfortably repay the loan with smaller monthly installments over a longer period.

Reasons to Consider a Loan Against Property if You’re Self-Employed:

1) Access to a Larger Loan Amount:
You can borrow up to Rs.3.5 crore with a loan against property. This money can be used for various business purposes, including expansion, managing inventory, paying salaries, buying equipment, and covering operating expenses. This way, you don’t have to look elsewhere for funds to boost your business.

2) Lower Interest Rates:
When you’re building your business step by step, the last thing you want is to be overwhelmed by high EMI payments. With a loan against property, using your property as collateral ensures a lower interest rate. This makes it easier to manage smaller monthly EMI payments alongside your usual expenses.

3) Extended Repayment Period:
You don’t need to worry about paying off your loan quickly, allowing your business funds to be consumed by high EMIs. Lenders offer self-employed individuals a repayment period of up to 18 years, letting you handle smaller EMIs over an extended time.

These are some key reasons to consider a loan against property for starting or growing your business. Check your LAP eligibility today and take the first step. Bajaj Finserv offers excellent pre-approved deals on loans against property, personal loans, home loans, and more. This can make your loan application process easier and faster. You can view your pre-approved offers now by sharing basic details like your name and mobile number.