Need Emergency Money? Loan Against Property is Best Option


Money is the most important requirement for a business or an individual to stay afloat and alive. But traditional loan products and lending processes make it difficult to avail of a loan when you need the funds quickly.

This article gives you the ultimate solution to this problem and shows you how a loan against property can be your best bet during hard times.

What is a Loan Against Property?

The operating principle of a loan against property, or mortgage loan, is simple.

As long as you own a property and are willing to keep it as collateral with the lender, nothing can stop you from getting funds under a loan against property.

A few other factors like the credit score, property value, income and liabilities, and educational qualifications play a minor role in the property loan approval process, though.

What Makes a Loan Against Property Special?

A loan against property is the best option for meeting the urgent requirement of cash. The following reasons make it an excellent choice.

1. High Loan Amount

Unlike many other loans, lenders offering loans against property keep the property of the borrowers as a collateral guarantee.

This allows you to get funds by making your idle property work for you. As any property is a safe asset, lenders offer as high as up to 60% of the property’s market value as a loan.

However, in case a borrower is unable to pay the EMIs on time, lenders would allow them some grace period at first and start the process of asset liquidation after some time.

To be on the safe side, apply for an amount that you can pay off in time, even if that means the loan amount is much lesser than the upper limit you are eligible for.

2. Minimal Documentation

The less number of documents needed to apply for a loan against a property makes it an attractive option for getting quick cash.

The documents that you need to submit include the filled application form, photograph, property papers, age, identity, address, and income proof, and tax receipts.

Many lenders have moved to the digital verification of documents, which makes it easier to apply for a mortgage loan.

3. Long EMI Repayment Tenure

A loan against property offers a longer tenure than many other loans for paying back the interest and capital.

Generally, most lenders offer a repayment tenure of 15 years, but a few reputed lenders with pan-India network coverage allow up to 20 years for repayment.

4. Flexible Repayment Options

You may pay the loan against property interest rateand the principal amount through ECS or post-dated cheques through the loan repayment tenure as agreed between you and the lender.

5. Excellent Tax Savings

When people are in urgent need of cash, they often resort to distress borrowing at higher interest rates. A mortgage loan allows you to avail cash at a lower interestrate and also get tax benefits for the same.

To get tax deductions, you can use the following two sections of the Income Tax Act.

a. Section 37(1) – Under this section, you can claim a tax deduction on interest payment.

b. Section 24 – This section allows you to claim tax benefits on interest payment of up to Rs. 2 lakh, if you use the loan amount to finance your new home.


Any emergency has the habit of knocking one’s door when they are the most unprepared.

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