Weddings can be a costly affair, which drains out all your savings. In today’s time, people have started opting for loans to finance their wedding. This helps them in keeping their savings intact, while also not bearing the burden of wedding expenses all at once. One of the ways to fund your weddings is taking a Loan Against Property.
If you are not sure, what it means. This article will help figure out all the necessary details and throw light if Loan Against Property is a good idea to fund your wedding.
What is Loan Against Property?
A loan that involves mortgaging your property and accessing the fund for your requirement is known as a loan Against Property. The fund received against your property can be used for any purpose like Wedding, business growth, education, and many more.
The loan allows one to use the values of a property to meet their expense. While the loan amount depends on the value of the property, even after it has been used as collateral, one can use it as you please.
Features of Loan Against Property
While there are various loans available, the loan against property has some special features too:
- Easy documentation: As the eligibility criteria for LAP are low, the documentation process is easy and simple. The main eligibility is calculated based on the property value, income of the applicant, repayment capacity, and more. So without much hassle, you can get a loan for your wedding through your property.
- Flexible Repayment option: The loan repayment option in the case of LAP is very flexible. Without any worries, you can repay the loan at your convenience and the way you want to.
- Collateral: For a Loan against property, the collateral can be any property that you might have. Whether the property is commercial or residential you can take a property loan on it while also using the property at the same time.
- Personalised products: With Fullerton India, you can also avail of personalized loans for other purposes through your property. You can also get a property loan interest rate starting at as low as 9%.
- Approval Amount: The loan amount available through LAP is up to Rs 5crore. Though the final amount will depend on the market value of the property. Fullerton India offers a loan amount of up to 70% of your property’s market value.
So if you have a property that you can keep as collateral, then with the above details available, you can decide whether you want to opt for a Loan against property to fund your wedding.
How to apply for Loan Against Property
If you are interested in applying for the Loan Against property follow the below steps:
Step 1: Visit the website of the lender or download their app.
Step 2: Click on the Apply for Loan Against Property, and select the appropriate option of whether you are salaried or self-employed or an SME.
Step 3: Fill in the online form with your phone number, employment details, bank details, and other personal details.
Step 4: Upload scanned copies of the following documents:
- Proof of Identity
- Address Proof
- Age proof
- Bank Statements for the last 6 months
- Last 6 months’ salary slips (for salaried customers)
- Audited financial statements (for self-employed and SME applicants)
- Form 16
- Income Tax Returns for the last 3 years
- Processing fee cheque
- Documentation about the property offered as collateral
Step 5: Click on the submit button. If you are eligible for the loan a customer care executive will get in touch with you for the next steps.
Now that you know all the details about Loan Against property you will be able to make better decisions. Though there are other options available too for financing your wedding, but LAP offers low-interest-rate, quick applications, and fast loan disbursals making it easier for you. You also need to make sure that the lender you choose must offer the best services.