One of the biggest problems that all business owners face is the lack of funds. It is not easy to get access to funds and it does seem worthwhile to borrow from friends and family for business expansion. Hence, the only way to get funds for business is to use your property. If you are a proud owner of a residential or commercial property, you can use it to get access to funds. There are several companies in India that offer finance against property and the loan is available at low interest and flexible repayment terms.


One of the most important things is to ensure that the property is under your name and it should not be mortgaged anywhere else. If you have joint owners of the property, they will become joint applicants for the loan. Your property can be in use, rented, leased, or idle and you can apply for a loan. Let us take a look at the documents needed for the loan application.


•    Duly filled application form,

•    Identity proof,

•    Address proof,

•    Income proof of the applicant,

•    Title deed of the property,

•    Business registration proof,

•    KYC of the partners,

•    Income statement and balance sheet of the business.

•    Passport sized photographs.


Once you submit the online application, the lender will hire a market valuer to estimate the market value of your property. You need to keep in mind that the lender will not offer a loan for 100% value of the property but will fund about 65%-70% value of your property. Hence, estimation of the market cost of the property is necessary. If you have a valuation report, you can submit it at the time of application.


If everything is in place, you will have to hypothecate the property with the lender and your loan application will be approved. The lender will transfer the property back to you after you have repaid the loan amount. You can repay the loan in EMIs as you make use of the funds. In a secured loan, when you get finance against property, it is very important to make the EMI payment on time. If you fail to do so, the lender will auction the property to recover the outstanding dues.


A major advantage of finance against property is that you can use the funds for any purpose in the business and the lender will not ask you about the same. You can enjoy low rate of interest and flexible repayment tenure with the loan. It is a preferred choice of many business owners in the country and allows you to make the most of the property you own. The simple and hassle free loan application procedure makes it easier for you to get access to funds. It helps to use the EMI calculator before you sign on the loan documents. It will give an insight into the amount of EMI payable and will allow you to make the right borrowing decision. Regular payment of EMI will also help build a strong credit score.