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7 Common Myths About Loan Against Property

Shubham Housing Finance busts 7 common myths about Loan Against Property, helping you make informed decisions with clarity and confidence. Know the facts before you borrow!

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7 Common Myths About Loan Against Property

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  1. LOANAGAINST PROPERTY PRESENTATIONBY SHUBHAMHOUSINGFINANCE

  2. TableOfContent 7CommonMythsAboutLoanAgainst Property–Busted! WhatisaLoanAgainstProperty? Myth1-RiskofLosingPropertyOwnership Myth2-OnlyforResidentialProperties Myth3-ComplexApplicationProcess Myth4-LoanAgainstPropertyHasVery HighInterestRates

  3. TableOfContent Myth5-YouCannotSelltheProperty UntiltheLoanisRepaid Myth6-TheLoanAmountEqualsthe Property’sFullValue Myth7-OnlySalariedIndividuals Conclusion

  4. 7CommonMythsAboutLoan AgainstProperty–Busted! ALoanAgainstPropertyisasecuredloanthatallowsindividualstoborrowfundsby pledgingtheirpropertyascollateral.Despitebeingawidelyusedfinancialtool, therearemanymisconceptions aboutLoan Against Property(LAP)thatmayprevent potentialborrowersfrommakinginformeddecisions.Let’sbustedsomeof the most commonmythssurrounding Loan AgainstProperty

  5. Myth1:RiskofLosing PropertyOwnership Myth:ManypeoplebelievethattakingaLoanAgainst Propertymeanstheywillautomaticallyloseownershipof theirpropertyiftheyfailtorepayon time. Fact:BorrowersdonotloseownershipoftheirpropertywhentheytakeaLoanAgainstProperty.Aslongastheborrowerrepaystheloanaspertheagreedterms,theyretainownership. The lenderonlyholdsthepropertyas collateral.

  6. Myth2: LAPisOnlyfor ResidentialProperties Myth:Acommonmisconception isthatonlyresidential propertiescanbe pledgedfora LoanAgainst Property. Fact:A Loan AgainstPropertycanbeavailedagainst varioustypesofrealestate,includingcommercial properties,industrialproperties,andevenplotsofland (subjecttolender policies).Theproperty’seligibility dependson factors suchas valuation, location,andlegal clearance.

  7. Myth3:Complex ApplicationProcess Myth:ManybelievethatsecuringaLoanAgainstProperty involves alengthyandcomplicatedapplicationprocess withexcessivepaperwork. Fact:Manybelievethat securingaLoan AgainstPropertyis cumbersome.However,lenders havestreamlinedthe processtomakeiteasier.Withminimaldocumentationand theavailabilityofdigitalprocessing,applicationsarenow processedfaster thanever.

  8. Myth4:LoanAgainst PropertyHasVeryHigh InterestRates Myth:Someborrowersassume thatsincetheloanis backedbyproperty,itmustcomewithveryhighinterest rates,makingitunaffordable. Fact:Comparedtounsecuredloanslikepersonalloans,a LoanAgainstPropertytypicallycomeswithlowerinterest ratesbecauseitisasecuredloan.

  9. Myth5:YouCannotSell thePropertyUntilthe LoanisRepaid Myth:Itisoftenbelieved thatonceapropertyispledged foraloan, theownercannotsellortransferituntilthe loaniscompletelyrepaid. Fact:Borrowerscansellthe propertyevenifthereisan ongoing loan, providedtheysettletheoutstanding loan amount beforetransferringownership.Inmanycases, buyerscleartheexistingloanaspartofthepurchase transaction.

  10. Myth6:TheLoan AmountEqualsthe Property’sFullValue Myth:Someborrowersthinktheycangetaloanequalto 100%oftheirproperty’smarketvalue. Fact:Lenders do notofferaloanequaltothefullmarket value oftheproperty.TheLoan-to-Value (LTV)ratio generallyrangesbetween50%and75%oftheproperty’s marketvalue,dependingonthe lender’s policiesandthe borrower'sprofile.

  11. Myth7:OnlySalaried IndividualsCanApply Myth:Thereisamisconceptionthatonlysalaried professionalswithfixedmonthlyincomescanapplyfora LoanAgainst Property. Reality:ALoan AgainstPropertyisavailabletoboth salariedandself-employedindividuals.Businessowners, professionals,andevenfirmscanapplyforthisloan, providedtheymeetthe lender’sincomeandeligibility criteria.

  12. Conclusion ALoanAgainstPropertyisareliablefinancingoptionthat offers highloanamountsatcompetitiveinterestrates. Understanding thefactsanddebunkingmythscanhelp borrowersmakeinformeddecisionsandleveragetheir property’svaluewithoutunnecessaryconcerns.Always comparelenders,checkthetermscarefully,andassess yourrepaymentcapacitybefore applying.

  13. Contact Information Phone 18002582225 Website www.shubham.co

  14. THANK YOU

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