Know The Loan Options Offered By Housing Finance Companies
Most of us think of housing finance companies when we want a home loan, and it is only obvious to do so, given the knowledge that these corporations have in the home loan segment. However, these companies have grown over time and have expanded their portfolio of loan assistance also to satisfy the requirements of the non-housing section. You can get in touch with housing finance organisations for several other kinds of loans such as the purchase of commercial property or the financing of business or personal expenditures.
Let us look at the loan options in the non-housing segment offered by housing finance companies:
They are designed for those who have already taken a home loan. Usually, housing loan settlements stretch over a long duration. During this period, you may require extra funds for various reasons such as marriage expenses, medical treatment, or children’s education. In such scenarios, instead of searching other sources of finance, you can quickly seek a top-up loan over your current home loan. Usually, mortgage providers allow customers to avail a top-up loan after 12 months of the final payment of the current credit and upon ownership or completion of the funded property.
Loan against property
You can meet your personal or business expenses by taking a loan against property. It means mortgaging your existing residential or commercial property. Since it is a secured loan, the processing and approval procedure is quick and simple. Additionally, the rate of interest is low as compared to a consumer or commercial loan. Normally, you are granted a credit of up to 50 per cent of the market value of the property to be mortgaged. You can use LAP loan for various purposes ranging from meeting a future marriage cost to financing business to develop plans to taking a loan to meet any medical expenses to acquiring a property or an asset which may not otherwise be eligible for a credit in its own capacity. Usually, the loan tenure is up to 15 years.
Loans for commercial properties
Housing finance companies also offer loans for acquisition, expansion, construction or development of commercial properties along with built-up properties and areas. These loans can be availed by businessmen or professionals, including engineers, lawyers, chartered accountants etc. The amount of the loan is usually 75 to 90 per cent of the market value of the property, while the term may extend to 15 years subject to the reimbursement ability of the customer, as calculated by the lender. Mortgage providers often offer customers with expert legal and technical guidance to simplify the acquisition of commercial properties.
Lease rental discounting
Typically, commercial premises fetch high rents. Owners of industrial premises also lease rental discounting service to get a loan against the rental income received. Under this service, owners can avail a loan up to 50 per cent of the market value of the property.