A secured mode of finance; a loan against property, can help you monetise your asset for different needs. Whether you have a commercial or residential property, you can pledge it as security to a lender and avail funds. A loan against property can help you fulfil different requirements, be it business or personal. Read on to know more about the prudent uses of this mode of finance.
Business Expansion:
Every business, big or small, has plans to expand at some point or another in its journey. Whether you are willing to expand your current setup or establish a new one altogether, you need a considerable sum of money. In such a scenario, you can opt for a loan against property and deploy the funds for undertaking expansion activities.
Expansion of any business, if done in the right manner, helps it augment revenue. So, funds procured through a loan against property can help you build a platform to boost your revenues in the long run.
Deploy New Technology:
In a competitive business landscape, technology plays a crucial role in defining success. It gives you an edge over your competitors and commands a dominant position in the market. Depending on your business, the cost of deploying new technology could easily run into several lakhs of rupees. It’s not advisable to break your savings or touch your company’s working capital to meet this cost.
You can easily avail a large sum of money through a loan against property in such a scenario. The funds received can be used to infuse new technology in your business that will help you gain a competitive edge in the market.
Encash on a Market Opportunity:
In business, opportunities come in several forms. Often, an announcement by the Government or industry regulator gives you the chance to take your venture to the next level. However, if you need a considerable sum of money to encash upon it, a loan against property is a prudent option.
With the help of funds, you can start working on a new lucrative business proposition that will help your business reach new heights in the future.
Pay for Your Child’s Higher Education:
Every parent wants to give the best education to their children to secure their future. However, education inflation is rising at a fast clip, making higher education a costly affair. Costs are even higher if you plan to send your child abroad.
In such a scenario, you can bank on funds obtained through a loan against property and use it to pay for your child’s higher education. Depending on the property’s current market value, you can get a reasonable amount to fulfil this all-important need.
Address a Medical Contingency:
Medical contingencies often arrive unannounced and can derail the most well-laid financial plans in no time. For critical diseases such as cancer, stroke, renal failure, etc., the costs can be astronomical. You can easily meet these high costs by obtaining funds through a loan against property.
It can help you meet hospitalisation expenses and take care of post-hospitalisation expenses that continue for an extended period with critical ailments. A loan against property ensures that you don’t end up drying your existing savings while addressing a medical emergency.
The Final Word:
Before availing funds through a loan against property for any of the above needs, it’s essential to conduct due diligence. Compare interest rates from multiple lenders and make sure you have a repayment plan in place to ensure you don’t default on EMIs.
It is recommended not to take the leverage of the entire available amount unless you desperately need it. If the required amount is less than the available amount, you should abstain from taking the full leverage. It will help curb the overall EMI burden.
Grihum Housing Finance offers a loan against property at an attractive rate of interest. You can avail the desired funds in quick time with minimal documentation. Just fill-up the application form, and our representatives will get in touch with you.
