There are several advantages of secured credits like loan against the shop that has led to a steady rise in their demand over the past several years. Unlike unsecured credits, which come with high rates of interest and relatively shorter tenor, a mortgage loan is much more flexible in both regards. The collateral acts as a guarantee that reduces the risk of the lender.
According to data released by credit company, TransUnion CIBIL, loan against property, of which loan against shop is a subset, witnessed a robust 21.8% CAGR for FY18. There are over 1.9 million borrowers who have availed for this type of credit. You may now check out what this loan brings.
Know What A Loan Against Shop Comprises
Loan against commercial shop is a type of mortgage loan that brings you an amount of high value to meet the necessary capital requirement. It can fetch you a loan of up to Rs. 3.5 Crore that can be utilized to meet several big-budget expenses related to your commercial establishment.
You may use it to renovate your shop or to restock it, expand your existing space or open a new one altogether, etc.
Some of the best lenders like Bajaj Finserv bring Loan Against Shop with easy-to-meet eligibilities and document requirements. Such credit options also come with other beneficial features that work to the advantage of a business owner.
Features like low-interest rates also make the loan affordable and make repayment convenient through easy EMIs. You may choose a repayment tenor as per your convenience that extends up to 18 years. Furthermore, you may opt for the Flexi Loan facility that lets you withdraw as per your convenience from a pre-sanctioned loan amount, and you may opt to prepay at any time during the loan tenor. Here, since the interest is charged only on the amount withdrawn, the burden of EMI reduces too.
Before applying for a loan against the shop, you, however, must check the eligibilities and documents required. On meeting these eligibilities, you may go for online application of this loan, which fastens the application process and reduces the time of approval.
Now when you know what is a loan against property, you may proceed further.
There are certain aspects of these loans which you should be familiar with that will help you apply for a mortgage loan. First of all, you should know whether you are eligible for such loans.
Eligibility Criteria
Considering that borrowers have an appreciating property like a shop that can be considered as a quality mortgage, reputed lenders are willing to offer the requested credit amount against nominal processing fee. Additionally, borrowers only need to qualify for this loan against property by meeting some simple eligibility criteria, viz. –
Salaried individuals
- He/she should be in the age bracket of 33 to 58 years
- One should be an Indian citizen
- He/she should be a salaried employee working in an MNC or private or public company
Self-employed borrowers
- Potential borrowers need to be between 25 to 70 years of age
- They should be a resident of India with residing in any of the lender specified cities across the country
- He/she should have a regular source of income
Documents
While such minimum eligibility criteria eases and hasten the application process to avail the loan, the furnishing of nominal documentation further ensures the ease in its accessibility. Here is a list of documents needed to apply for a loan against property –
Self-employed individuals
- Address proof
- Bank account statement of the last 6 months
- Copy of documents for the property to be mortgaged
- Aadhaar Card/PAN card
Salaried borrowers
- IT returns
- Address proof
- Copy of documents for the property to be mortgaged
- Address proof
- Bank account statement of the last 3 months
- Latest salary slip
- PAN Card/ Aadhaar card
You can refer to lenders such as Bajaj Finserv who offers Loans Against Property against such easy eligibility and documentation requirements, Bajaj Finserv also brings you pre-approved offers which makes availing these loans quicker and easier for borrowers. These offers are available on multiple financial products including home loans, business loans, personal loans, etc. Submit only a few details online to check your pre-approved offer online.
Loans against properties allow borrowers to utilize the value of their property to avail funds and meet necessary financial requirements. Opt for such loans only from leading lenders to benefit from the most repayment-friendly terms and benefits.