Businesses require funds continuously for smooth operations. To fulfill this financial requirement of businesses, business loans are available in the market. Different loans suit the varied requirements of the business. But what if your business has more than one type of financial requirement? Which loan would be suitable in such cases?
A mortgage loan would be the best solution for such cases when businesses require funds for varied uses. Mortgage loans, also called loans against property, are secured personal loans that are offered when you mortgage a property that you own. You get the loan against the value of the property, and you can then use it for your financial obligations. Here are some reasons why a loan against a property makes for an ideal financial solution for your business needs –
It has multipurpose use
One of the reasons why a loan against property is suitable for business is that the loan is multipurpose in nature. A loan against property is a kind of personal loan which you can use for any type of business financing need that you have. The lender would not ask any questions on the usage of the loan giving you full flexibility.
It offers high amounts of loan
The loan is offered against the value of the property. Lenders offer up to 70% of the value of the property mortgaged depending on the type of property that you pledge for the loan. Since property values are high, the loan quantum is also substantial, giving you considerable funds at your disposal for meeting your business needs.
The interest rates are low
A loan against property is secured against the property that you mortgage, making it a secured loan. Since it is a secured loan, the interest rates are low. Lenders can repossess the property and sell it off to realize the loan in case of any default, and therefore, they don’t face high default risks. This allows them to offer the loan at lower interest rates, which makes the loan affordable for businesses.
Ease of availability
You can avail of a loan against property easily as the loan is offered by banks and non-banking financial companies alike. There are, therefore, a lot of loan offers at your disposal. Even the loan application and sanction process is simple, making it easier for your business to get the funds that it requires.
Long repayment tenure
Since the loan funds granted under a loan against property are substantial, the lender allows long repayment tenures to borrowers so that the loan can be repaid easily. You get repayment tenures of up to 15 years against the loan which makes it easy for your business to repay the EMIs in smaller and affordable amounts without incurring a financial strain.
Flexibility in using your property
The property that your mortgage for the loan remains in your possession and you have the liberty to use the property for residential or commercial purposes. Thus, even after mortgaging the property, you can retain the usage of your property.
These are some of the reasons why a loan against property is a good financing solution for your business. So, the next time that your business requires funds and you have a property to your name, avail a Mortgage loans.