In the financial world, we often hear about the benefits of taking a Loan Against Property (LAP). Whether you’re looking to expand your business or meet personal financial goals, LAP can be a valuable tool.
At OneNDF, headquartered in Delhi, we pride ourselves on our expertise in LAP, which constitutes the majority of our offerings. As a leading loan marketplace for SMEs, we provide a suite of financial solutions, with LAP being our flagship product.
Our track record speaks for itself, with a total disbursement amount of INR 3000 crore, underscoring our commitment to providing substantial financial support to our clients. In this article, we will discuss five important reasons why one should avail Loan against property.
To get detailed information about LAP like tenure, repayment, and processing fees applicable to Loan Against Property people can reach out to prominent financial services provider firm “OneNDF.” With its head office in Delhi, OneNDF is a leading loan marketplace for SMEs.
Having more than a decade of rich experience, the fintech platform also assists individuals in providing financial solutions for Unsecured loans, LAP, working capital, invoice discounting, PO financing, bill discounting, equipment financing, and more. OneNDF has emerged as the one-stop destination for people seeking LAP.
OneNDF’s team comprises highly skilled professionals with years of experience in finance, who can help you easily secure LAP in a fast-paced manner. The OneNDF LAP eligibility calculator automatically calculates the loan amount you are eligible for by pulling details such as your monthly income, monthly existing obligations, loan tenure, and property value as you complete your profile on the OneNDF platform.
5 Reasons Why You Should Take A Loan Against Property
At OneNDF, we believe that affordable rates, tax benefits, repayment tenure, and large loan sanction amounts could be a few reasons why you can think of applying for LAP.
1. Affordable Rates
Since LAP is a secured loan, it gives the lender full confidence that they have a backup even if the borrower fails to repay the loan. Property is treated as stellar collateral, and thus lenders such as banks or NBFCs offer LAP at more affordable rates compared to unsecured loans.
2. Tax Benefits
For Business Use: If the LAP is used for business purposes, such as expanding the business or purchasing new property for the business, then the interest paid on the loan can be claimed as a business expense. This can reduce the taxable income of the business, thereby reducing the tax liability. In this case, the benefit is not specifically capped at Rs 2 lakh, as it depends on the actual interest paid and the income of the business.
Also Read: Tax Benefits on Loan Against Property
3. Repayment tenure
LAP offers flexible and convenient repayment tenure, which can extend up to 15 years. Unlike unsecured loans, which typically have shorter repayment periods, LAP allows for a longer timeframe, reducing the monthly burden of debt repayment.
4. LAP Is Easy To Avail:
One of the biggest advantages of a loan against property is that it is a secured loan type and banks are willing to provide the credit. Besides, the application and verification process for a LAP is quicker compared to an unsecured loan.
For unsecured loans, the screening procedure and eligibility criteria are more thorough where lenders check the borrower’s repayment capacity at length. Unlike other loan categories, in the case of LAP, minimal documentation is required to process the loan application. The documents required to avail LAP include Identity proof/KYC Documents Income Documents (ITR & Financials), Bank statements Property/title documents.
5. High Loan Sanction Amount
For LAP, Banks/FI’s determine the loan amount based on the fair market value of the property using the loan-to-value (LTV) ratio method. Borrowers can get up to 70% – 85% of the property’s fair market value, In some cases, banks are willing to fund LAP up to an impressive 30 crore, providing substantial financial support for your needs.
Bottom Line:
Loan Against Property (LAP) is the preferred choice for businesses looking to leverage the value of their property to achieve their financial goals. Whether you’re facing significant expenses like funding a child’s education, planning an expensive trip, or consolidating debt, LAP offers the flexibility to use the funds as you see fit, providing financial freedom and flexibility.
You Can Also Explore Loan Against Property in different Locations
Choosing the right Bank/Financial Institutions can make a significant difference in your LAP experience. OneNDF stands out as a trusted partner in this journey, offering access to the best banks and financial institutions in the market.
With competitive property loan interest rates, excellent customer service, transparent terms, and a seamless application process, OneNDF ensures that you make the right decision for your financial needs. Our team of experts compares different lenders, helping you navigate the complexities of LAP.
Since its inception in 2013 by Nitin Khandelwal, a banker turned entrepreneur, OneNDF has disbursed loans worth over INR 3,000 crore, serving more than 2,000 businesses. As a leading loan marketplace specializing in LAP, which constitutes 90% of our total disbursements, we are committed to providing substantial financial support to our clients. To learn more about how OneNDF can assist you in securing a Loan Against Property, visit our official website.
