Steps To Avail A Business Start-up Loan Against Property
The employment rate of India has been growing at a rate of 2.3% each year. The growth of the Small and Medium Enterprises (SMEs) in India have contributed to this increase in the employment rate. With this growth in the SMEs the demand for commercial buildings has also sprung up. However, entrepreneurs tend to face problems like lack of funds, insufficient skilled labour, small workspace, etc.
To beat such lack of funds, several financial institutions and NBFCs provide start up loan on property with a substantial amount and longer tenor as a source of finance. Thus, to avail such loans and enjoy its benefits, you have to be aware of specific steps, such as –
Step 1: Gather Proper Knowledge On The Charges
Collect information about the loan you are planning to avail. Inquire your about the interest rate and other applicable charges like –
● Processing Fee- Charged for processing your loan application.
● Penal Charges- Charged for not paying your start-up loan EMIs within the due date.
● EMI Bounce Charges- Charged for EMI bounces due to the lack of insufficient funds in your account at the time of repayment.
● Statement Charges- Charged for issuing loan statement, principal amount and interest amount statement.
Apart from the above fees and charges for a loan against property, there are other costs that your lender may apply such as foreclosure and part-payment charges.
Step 2: Compare Various Lenders
Before you select your lender, make sure you request quotations from multiple lenders. Evaluate the lenders based on the interest rate, other applicable charges, documentation and application process, EMI amount and tenor, eligibility criteria, etc.
Step 3: Check The Emi Amount And Loan Tenor
Before you apply for a loan, check the EMI amount and loan tenor. A self-employed loan has a longer tenor compared to unsecured loans, thus making the EMIs less expensive. In case you have a regular cash flow, you can choose to have a shorter tenor to complete repayment faster although it will increase the EMIs.
Step 4: Know The Eligibility Criteria
To avail a start-up loan, you will have to meet the eligibility criteria. Some basic eligibility criteria demanded by lenders include –
● Age-Applicants have to be within the age bracket of 25 to 70 years.
● Income- You should have a regular source of income of a considerable amount.
● CIBIL score- A CIBIL score of 750 and above should be maintained.
In addition to the above, applicants have to be a resident of India and reside in the cities as specified by the lender.
Step 5: The Application Process
Before you avail a credit inquire your loan on how to apply for a loan against property for self-employed. The application process is convenient and can be done online. For an online application, you have to visit the official website of your lender and fill the application form by providing some of your financial and personal details. After you submit the application form, a representative of your lender will visit you to collect the required documents. Once the documents are verified, your self-employed loan amount will be disbursed to you.
Step 6: Be Aware Of The Required Documents
To process the application of your loan, you will have to provide a set of documents as given below.
● KYC documents such as passports, Aadhaar card, driving license, PAN card, Voter ID, etc.
● Address proof documents such as a gas bill, telephone bill, water bill, electricity bill, etc.
● Previous 6 months bank statements.
● Copy of the property documents you wish to mortgage.
Several financial institutions and NBFCs provide such loans against the above mentioned documents. Bajaj Finserv is one such NBFC that offer Loan Against Property for Self-Employed and other financial products at an attractive interest rate and minimal part-payment and foreclosure charges. They also provide online account access, instant approval, balance transfer facility, flexible tenor and a loan amount up to Rs. 3.5 Crore.
Bajaj Finserv also provides pre-approved offers to make the application process fast and hassle-free. Pre-approved offers are available on both secured credits such as home loans and unsecured credits such as business loans and personal loans.
These pre-approved offers depend on your CIBIL score and financial stability. If you have low cibil score you have know how to improve credit score for getting instant approval on loan. Having a pre-approved offer will also help in availing a loan at a low-interest rate. However, consider the above-mentioned points before you avail a start-up loan to avoid issues. Also, make sure to pay your dues on time to avoid hefty penalties and accumulation of debt.