Bizolot
Loan Against Property
Ideal funding option for your business venture
Get personalised quotes
Kickstart Your Business with a Loan Against Property on Bizolot
Starting a new business can be exciting but challenging, especially when it comes to financing. While first-time entrepreneurs may not qualify for certain loans due to strict eligibility criteria, a Loan Against Property (LAP) offers a reliable and flexible solution. By pledging residential or commercial property as collateral, you can access significant funding with attractive repayment terms. Here’s why a Loan Against Property could be the ideal funding option for your business venture.
Access Substantial Loan Amounts
Government schemes offer small business loans tailored for specific demographics, like minority business loans or loans for women entrepreneurs. However, if you require larger funding, a Loan Against Property is the way to go. With LAP, you can secure up to a percentage of your property's market value, often running into crores. For instance, some providers offer loans of up to ₹10.5 crore, empowering you to fund even ambitious projects.
Benefit from Competitive Interest Rates
Loans secured by property tend to have lower interest rates, as they are less risky for lenders. Whether you're seeking funds to launch a startup or sustain operations with a working capital loan, LAP ensures affordability by minimizing the financial burden. Comparing lenders can help you secure the best rates for your needs.
Flexible and Long Repayment Tenure
With LAP, you can enjoy repayment tenures stretching up to 15 years. This flexibility allows you to spread out your EMIs, keeping them manageable and aligned with your cash flow. This feature makes property-backed loans one of the most startup-friendly financing options.
Simplified Eligibility Requirements
A Loan Against Property is easier to secure as eligibility primarily hinges on the value and ownership of the property, not solely on income. This is particularly advantageous for startups in the early stages. Ensure your property is free from litigation to maximize approval chances.
Tailor Your Loan to Your Business Needs
Loans Against Property come with customizable options like Flexi Hybrid Facilities, offering unmatched flexibility. With this feature, you can:
✔Withdraw funds as needed from your approved loan amount.
✔Pay interest only on the amount withdrawn, not the entire sanction.
✔Make interest-only EMI payments for up to 4 years of the tenure.
✔Prepay or foreclose the loan anytime using surplus funds without additional charges.
This adaptability makes LAP an excellent choice for meeting dynamic business needs while optimizing costs.
Frequently Asked Questions
Who can apply for a Loan Against Property?
Anyone owning a residential or commercial property that is free from litigation can apply, regardless of their income or employment status.
How much funding can I get through LAP?
The loan amount depends on the market value of your property. Typically, lenders offer up to 60–70% of the property’s value.
What are the interest rates for LAP?
Interest rates vary between lenders but are generally lower compared to unsecured business loans due to the collateral involved.
Can I use a Loan Against Property for purposes other than starting a business?
Yes, LAP can be used for any financial requirement, such as business expansion, education, medical expenses, or personal needs.
How long does it take to process a Loan Against Property?
The process usually takes 7–15 working days, depending on property verification and documentation.
What is the maximum term limit for MSME loan?
The maximum term limit for the MSME loan is 36 months.
What is the interest rate for a MSME loan?
The interest rate starts from Rs. 50 per day or 1.5% per month, evaluated on a reducing balance.
What is the processing fee for MSME loan?
One time processing fee for a business loan is around 3% of the sanctioned loan amount.
What determines my sanctioned loan amount?
Your credit rating, business profits, and revenues will determine your final loan amount.