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What is a Loan Against Property?
This is a secured loan where the borrower pledges a self-owned property as collateral to get funding. You continue to own and use the property while using its value to access a loan. The loan amount depends on the property’s market value, location, and legal standing.
Loan Against Plot – A Smart Asset Move
Many people are unaware that even vacant land or a plot can be used to raise funds. A loan against plot works similarly, where the market value of the land is assessed, and funds are offered accordingly. It’s an excellent option if you're not ready to sell your land but still want to use it to access liquidity.
Loan Against Property Interest Rate
The loan against property interest rate usually starts from around 9% per annum and varies depending on your profile, the type of property, tenure, and the lending institution. Salaried individuals may enjoy slightly better rates compared to self-employed borrowers. Always compare options to get the most favorable terms.
Key Benefits
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High Loan Amount: Get up to 70% of the property's market value.
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Flexible Tenure: Repay over a period of up to 20 years, depending on the lender.
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Multipurpose Usage: Funds can be used for education, business, wedding expenses, medical emergencies, or any other personal requirement.
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Lower EMIs: Long tenures help reduce the EMI burden.
Who Can Apply?
Salaried individuals, self-employed professionals, and business owners with clear property ownership documents are typically eligible. Age and income criteria may vary slightly from one lender to another.
Documents Required
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Identity and address proof
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Income proof (salary slips, ITRs, or bank statements)
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Property documents (ownership proof, valuation, etc.)
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Photographs and application form
Final Thoughts
Whether it’s for expanding your business, funding a major life event, or managing an emergency, a loan against property is a strategic way to use your assets without liquidating them. And if you own vacant land, a loan against plot provides the same advantage.
With competitive loan against property interest rates, easy eligibility, and high-value funding, this financing option has become one of the most preferred choices for individuals looking to unlock the real value of their real estate.
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