The coronavirus pandemic has affected business worldwide and has left the world in a state of flux. Many businesses had to either shut down temporarily or shelve their plans of expansion amidst the uncertainty that the virus brought along with it. However, it seems that the economy is on the road to recovery with the number of cases falling and key activities resuming. This makes it an opportune time for any business to re-launch their business or think about expansion as economic recovery and pent-up demand can boost their business. In such a situation a loan against property might help business with their funding requirements till the cash flow cycle is back to normal.
Property loans can be obtained both through online or offline models by consumers and can enable businessmen to obtain quick money without large hassles. Such loans can be obtained by both large and small businessmen and allow them to use their property in an efficient manner. A businessman can obtain a loan against their property up to 60% of the property value and channelize such funds in a productive manner.
Why should you prefer a loan against property?
Every loan would require some or the other collateral in order to secure a lower rate of interest. In the case of personal loans that are unsecured the rates of interest are very high. As against taking higher rate loans which puts pressure on paying back on the person, loan against property can allow the person to obtain loans using a resource they already possess.
Loan against property is popular amongst users and preferable because:
- It is easier to obtain since property is kept as collateral.
- Allows the user to convert an unproductive immovable asset into productive usage.
- Loan against property lowest interest rate amongst other loan types for small business owners.
How to obtain a loan against property?
A consumer or business owner may prefer either an online or offline method for obtaining a loan against property. In either of the scenario, the customer can obtain such loans in a few simple step as follows:
- Inquiry can be made either online or offline
- Credentials and eligibility of the consumer are checked as against the minimum required income of the customer.
- If initial verification is approved, documents and picked up and verified and the loan is processed through the regional processing unit
- The final step is the disbursement of loans and utilization of the same by the customer for their business purposes.
Loan against property is provided by a variety of institutions including NBFCs and housing finance companies. PNB Housing finance is one of the leading companies which can provide you with such loans at a reasonable rate. Apart from excellent customer service which includes easy repayment options, long tenure, and loan against property at the lowest interest rates, PNB housing finance also provides doorstep services to its customers.
LAP or loan against property might hold the key to your business revival post-COVID-19 and provide you with the short term or long term funds needed to boost your business.