Loan Against Property
When in urgent financing need of significant capital, Muthoot FinCorp’s loan against property is your go-to avenue. As the name suggests, you can avail of this loan by pledging a residential or commercial property you own. This capital you get can be used to fund a business venture and generate ample funds to repay the loan comfortably. Muthoot FinCorp has designed secured LAP loans (loans against property) to cater to the different financial needs of the consumers. The whole process of loan approval is simple and quick
Before we dive into the key benefits and features of a Muthoot FinCorp LAP loan, you must understand the eligibility criteria and the documentation you will require to avail of a LAP. The primary criteria remain that you must be the owner of the property you are using as the collateral for the loan. You should also be a resident of the same city with a Muthoot branch where you are applying for the loan. Once you have checked the eligibility, you can simply fill up the form or visit your nearest Muthoot FinCorp branch to initiate the loan process ASAP. The point to remember is that if you have co-owners to the property, they must co-apply for the loan with their respective documents.
Now let us check the key features and benefits of a loan against property with Muthoot FinCorp.
- Negligible Application Fees: A minuscule fee of only 0.5% is charged on the amount of loan applied for. This becomes negligible in front of the instant capital you can generate in stringent times.
- Low Processing Fees: A very low processing fee of 2.5% is applicable on the amount of loan approved. This fee is deducted from the amount itself, so you do not have to pay anything from your pocket.
- No Pre-Payment Fees: If you choose to pay the loan prematurely, then no extra fees is charged provided the loan is settled from your own funds, and the loan has a floating rate of interest.
- Easy and Quick Processing: Very few documentation requirements make the entire loan disbursal process smooth and hassle-free. The whole process just takes a few days to complete, and the loan is received quickly.
- Option to Choose Between Fixed and Flexible Interest Rates: As per convenience, the applicant can choose from the available interest rate types. This makes the LAP loans a viable option to raise funds.
- Flexibility to Choose Tenure: The applicant has the option to choose tenure between 3 to 20 years. It is advisable to keep it as short as possible since a shorter duration attracts a low-interest rate.
Also, Read- Factors That Affect Loan Against Property Eligibility
- Auto Debit Via Bank Account: You do not need to set reminders for the EMI payments. Just connect the loan account with your bank account and enjoy the auto-debit facility offered by Muthoot.
- Use Collateral Twice: This is one of the best features of Muthoot FinCorp LAP. If your previous loan is on maturity and the property asset that you pledged has a high value, you can apply for a second or a top-up loan on the same property, unlike the usual lending behavior in the market.
- No Guarantors Needed: When applying for a loan with Muthoot FinCorp, you do not need to produce any individual repayment warranty, making the loan process confidential and secure for you.
- Quick Disbursal: When you are in urgent need of funds, you do not have to wait for long. Once the property and document verification are done, the capital is disbursed to your bank account in just a few days.
- Maximum Value: You can get a loan equivalent to 50% of the property value, up to Rs 10 lakhs.
- Taxation Benefits: LAP brings you an added benefit of tax under Section 37(1), 80C, 24B, and 80EE of Income Tax Act, 1961. You can claim the benefit of up to 1.5 lakhs on the interest you paid to the lender in a year.
- No Loss of Ownership: As long as you are paying timely EMIs and maintaining a good repayment record, the ownership of the property is secured to your name. You have nothing to lose and significant capital to gain.
- Attractive Interest Rates: LAP loan interest is usually relatively low, which is at par with loan against property interest rate. With Muthoot FinCorp, the lowest interest rate remains one of the most attractive features.
Whether you have a start-up dream to fund, a wedding to take care of, or you wish to facilitate a foreign education for a dear one, a loan against property with Muthoot FinCorp is the most trusted doorway you can enter. With 134 plus years of earned market trust and 3600 branches across the nation, the lending organization is making many lives easier, happier, and more prosperous every day.