Opening and owning a business offers plenty of benefits. With your own business, you can utilise the profits for your own personal benefits while making business development decisions, based on your personal requirements.
However, while there are plenty of benefits, there are equally several risks involved. For one, the progression of the business will depend on the income and profits earned. Additionally, the performance of your start – up will also be based on the current market functioning and trend. In this case, if the market doesn’t work in your favor, you need to ensure that you have sufficient backing to assist you till the time is constructive towards your business.
All these incidences can be assured if you have the right financial backing and support right from the beginning itself. With sufficient funding, you can not only ensure that your start – up reaches it business goals but also receives the required financial protection especially when your business needs it.
In this case, loans would be the ideal option to consider for a start-up. But with so many loan options available in the market, which is the ideal option that will work for your startup? This is where the loan against property will work in your favor. Whether your property is a residential or commercial property, you will be viable to get adequate funding to help you start a business and guarantee its growth and development. Here is how these loans against property will benefit you:
High LTV ratio: Under the secured loan category, the loan against property is one option amongst the other loans that offers the highest loan amount in comparison to the collateral provided. In this case, the collateral provided will be your residential or commercial property. As compared to the other loan options, you will be viable to get around 60 to 70% of the value of the property as the loan amount. This can amount to over to a few lakhs to a crore. Additionally, you also have the opportunity to increase the value of the said collateral through the means of renovations and additional constructions.
Convenient tenure: One of the main benefits of loans against property is the repayment tenure. The repayment tenure determines how much of a period you would get to repay the borrowed funds, along with the added interest rates. But with a steady income from your start up, especially if it progressively profits in the future, you can easily repay back the borrowed funds in no time. Most lenders offer a time duration of a maximum of 15 years or till the loan borrower reaches the maximum age of 65 years.
Flexible interest rates: One of the main concerns about any loan is the interest rate. This is no different for the loan against property. However, as compared to the other loans, this loan offers flexible interest rates, of 11 to 15%. These rates ensure you get the funding you require, without any stress to repay it back within the given tenure.
Investing in you start up is a calculated step, if not a crucial one. The best way to ensure that you start up has a chance to succeed, and profit is by investing in a steady financial beginning. Loans against property are the ideal solution that will assist you.