pnb housing
October 21st, 2022

Why Take a Loan Against Property for Expanding Your Business This Diwali?

Blog Seprator

Thinking of scaling your business? Well there’s no better time than Diwali is there? 

All businesses need regular cash flow to fund their daily operations and upscale their processes as well. While you are absolutely right to depend on recurring revenue for your business to run smoothly, procuring new commercial spaces, buying official real estate, setting up a new factory, or simply growing operations, always require significant capital investment.  This is where a Loan Against Property can step in and help you realise the vision you have for your business. There is no better way, and of course, there is no better time than Diwali.

What is a Loan Against Property?

A Loan Against Property (LAP) is a secured loan that sanctions funds against property as collateral. Now, out of all the financial assistance available, why is a Loan Against Property a viable option? 

#1: Save More with Better Interest Rates 

As a Loan Against Property is a secured loan, financial institutions charge lower interest rates in comparison to other types of loans. This is a major factor in reducing your EMIs and freeing up your budget. 

Must Read: Loan against Property vs Personal Loan – Which One is Better?

#2: Fund High-Value Purchases with a Large Loan Amount Sanction 

Business expansion requires significant capital investment, be it to incorporate better machines or hire skilled workers. When you apply for an LAP, financial institutions will grant a larger loan amount as you’ve pledged a fixed asset (property) as collateral. PNB Housing sanctions loans up to 65% of the property’s value. With such a loan, you’ll steer clear of any financial hurdles you may face otherwise. Making the right decisions shouldn’t be hard.

#3: Focus More on Business Growth with Flexible Terms

Compared to most loans, LAPs come with a longer repayment tenure. PNB Housing offers LAPs with up to 20 years of repayment tenure. A long repayment period translates to smaller, more affordable EMIs. This will help you plan and establish a new set-up and run it without worrying about generating profit without worrying about huge monthly repayments. 

#4: Get Going with a Hassle-Free Application Process and Easy Sanction

A loan against property can be a quick and easy way to get the funds you need to finance your business growth. The application process is simple, and the funds are disbursed as soon as the legal documentation gets completed. This can be a great option if you need to get your business up and running quickly, and also if you’ve got a whole bunch of things to do during this festive season.

Must Read: How to Secure a Loan against Property

Documents Required 

To apply for a Loan Against Property, you will need to submit the following documents:

  • KYC Documents – Age & ID Proof (PAN Card, Passport, etc.), Residence Proof (Passport, Driving Licence, Telephone Bill etc.)
  • Certificate and Proof of business existence along with Business Profile
  • Last 3 years’ Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly certified/audited by a Chartered Accountant
  • Last 12 months Bank Account Statements (self & business)
  • Processing Fee Cheque in favour of ‘PNB Housing Finance Ltd.’
  • Photocopy of Title Documents of the Property, Approved Plan etc.

Secured by collateral, LAPs offer higher loan amounts at lower interest rates for an extended tenure. This makes them the most appropriate financial instrument to fund business expansion. PNB Housing offers relaxed LAP eligibility criteria, a hassle-free application process and quick fund disbursal to avoid any hiccups in your growth process. So light the spark of future success this Diwali, apply for a Loan Against Property today.

You can also apply for LAP Online for faster sanction by clicking on https://ace.pnbhousing.com/ 

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