Wednesday, Sep 18 2019 | Time 10:25 Hrs(IST)
  • Israeli Blue and White Bloc head says ready to 'speak with everyone' about Gov't formation
  • Trade pact headway may offer both US and India - a win-win situation
  • People deserve to know the truth about what happened to Netaji after air crash at Taihoku : Mamata
  • Israeli PM's challenger calls for unity gov't
  • Riyadh to present evidence of Iran's involvement in attacks on oil facilities on Wednesday
  • Trump to meet Imran
  • Pakistan condemns attack of Saudi's oil facility
  • Two more cases of Polio reported in Pakistan
  • All eyes on Mamata-Modi meet in capital on Wednesday
  • French experts to help Saudi Arabia investigate attacks on oil facilities
  • Low Pressure area likely to form in next 12 hrs under influence of cyclonic circulation : IMD
  • Ramanathan-Gengel move into doubles second round in Glassgow
  • Ramanathan-Gengel move into doubles second round in Glassgow
  • US Military leaders provided Trump with plan to attack Iran oil facilities - Reports
  • Momota, Chen Long advance into BWF China Open 2nd round
Press Releases » Business Wire India

The Truth Behind 6 Common Loan Against Property Myths

Business Wire India
When you require significant financing, a loan against property is a good loan to opt for. This is because the sanction comes with no spending constraints, which means that you can use it to fulfil any financial need. Further, as you pledge a high-value asset, the interest rate levied is lower when compared to unsecured loans. This is due to the fact that the lender enjoys a higher level of security and can recover losses easily in case of non-payment.


Bajaj Housing Finance Limited is offering a Loan Against Property to manage your high-end expenses with ease. Now be it financing your child’s education, managing your wedding expenses or even handling unforeseen medical expenses, this loan enables you to do it all.


Despite its many advantages, there are a number of misconceptions that people have about this loan offering. Take a look at the truth behind 6 such myths so that you can make a smart borrowing decision as and when the need arises:


Myth 1: You should never pledge your home as collateral for a loan

The truth is that having your home as collateral carries no risk whatsoever if you are consistent with repayment and have a plan in place. In fact, pledging your home acts as an incentive to be diligent with borrowing and repayment, as there is more at stake. Therefore a loan against property can help you make better decisions and result in good financial health in the long run.


Myth 2: You cannot use the property that you pledge

This is a common misconception, but it’s important to understand that you’re simply pledging property and there are no constraints on using it. This means that you can continue to live in your residential property even while you pledge it, as long as you aren’t consistently defaulting on payments.


Myth 3: You can borrow a loan amounting to the full value of the property

Generally, when you borrow a loan against property, your sanction is determined by taking into consideration a number of factors. An important one is the current market value of the property. Once the lender ascertains this, it arrives at a sanction on the basis of the loan-to-value ratio. Depending on the lender, you can get anywhere between 75% and 90% of the property’s value as a sanction.


Myth 4: You can only get a loan against a residential property

This is false as you can pledge both commercial and residential property as collateral for a loan against property. Additionally, you can use the sanction to purchase property as well. Moreover, as there are no restrictions on usage, you can use it for financing a foreign education or a destination wedding.


Myth 5: The sanction is based on the price at which the property was bought

This is entirely untrue as the lender calculates the loan amount based on the current market value of the collateral. This is determined by the lender’s evaluators and there are few other factors that are taken into consideration, such as the age and current condition of the property. A poorly maintained property may be less valuable and fetch a lower sanction regardless of how much it was worth at the time of purchase.


Myth 6: The lender takes possession of the collateral when taking a loan against property

This is false and in reality, you retain full possession of the collateral so long as you don’t default on payments. This misconception arises from the way a gold loan is handled; however, in case of loan against property, all you have to do is submit the property documents to the lender.


Now that these myths have been addressed, you are better prepared to understand the benefits associated with borrowing a loan against property. To enjoy value-added benefits, take this loan from a top-tier lender. For example, besides a large sanction of up to Rs. 3.5 crore, the Bajaj Finserv Loan Against Property also offers a Flexi Loan facility. This allows you to borrow as per your needs and pay interest only on the amount utilised. Additionally, you can also pay interest-only EMIs all through the tenor and repay the principal at the end for better cash flow management. To take advantage of these features, check your pre-approved offer and enjoy speedy, hassle-free application.
More News
Havells Announces Vicky Kaushal as the Brand Ambassador for Its Men’s Personal Grooming Range

Havells Announces Vicky Kaushal as the Brand Ambassador for Its Men’s Personal Grooming Range

17 Sep 2019 | 6:15 PM

Further deepening connect with style-savvy, quality conscious consumers, Havells India Limited today announced Vicky Kaushal as the Brand Ambassador for its male grooming products.

see more..
Dalmia Cement Unveils New Brand Positioning - ‘FUTURE TODAY’

Dalmia Cement Unveils New Brand Positioning - ‘FUTURE TODAY’

17 Sep 2019 | 5:55 PM

Dalmia Cement (Bharat) Limited, India’s leading cement company for over eight decades, today unveiled a new brand identity and positioning through a national marketing campaign. The new positioning, ‘Future Today’ recognizes Dalmia Cement’s technological innovation in manufacturing cement and its pioneering efforts in nation building.

see more..
Entrepreneur and Author Kapil Pathare Honoured With Doctorate in Business From Ballsbridge University

Entrepreneur and Author Kapil Pathare Honoured With Doctorate in Business From Ballsbridge University

17 Sep 2019 | 5:15 PM

Kapil Pathare, Director of VIP Clothing Ltd. has been presented with an honorary Doctorate in Business from Ballsbridge University for his outstanding contribution to business and entrepreneurship.

see more..

Beat the Effects of Economic Slowdown by Investing in a Bajaj Finance Fixed Deposit

17 Sep 2019 | 5:04 PM

The Indian Market has been going through a challenging phase as a result of slowdown in economic growth, higher tax impact on foreign institutional ...

see more..
Highclere Castle - Home of Downton Abbey - Is Now Available to Book on Airbnb

Highclere Castle - Home of Downton Abbey - Is Now Available to Book on Airbnb

17 Sep 2019 | 4:30 PM

To celebrate the motion picture event Downton Abbey, Highclere Castle will open its doors to two guests for a never-before-stay available only on Airbnb. Bookings open on Oct 1, 2019 at 12 p.m. BST.

see more..