Loans Against Property (LAP) A loan against property is a loan granted against the mortgage of any type of property. Be it residential, commercial, or industrial property. In this, the borrower should declare the end use of the loan in the application form. The Loans Against Property in India are basically kept as collateral with the lender. When taking a loan, gaining the trust and confidence of the lender is essential. So, mortgaging your property is a reliable option. When you mortgage your property with the lender, they will have better confidence in your business. When lenders trust your business, it is easier for us to compromise and reduce the rate of interest. This is one of the reasons why ROI for a LAP is cheaper compared to any other type of loan. Benefits of Loan Against Property 1. Lower Rate of Interest LAP interest rates are lower because institutions mitigate risk by taking mortgages. ROI varies based on the borrower’s profile. IT will be around MCLR + 1% (or maybe lower in a few cases).  *Interest varies depending on the profile of the borrower. 2. Tenure of the Loan As compared to other loans, a Loan Against property is provided for a longer period. The longer the tenure of the loan, the smaller will be the EMI. In LAP, the tenure may go up to 20 years. This will help the business to take the funds from a long-term perspective. 3. Low EMI There is an inverse relationship between the tenure of the loan and EMI. Generally, the longer the tenure, the lower will be the EMI. As LAP has offered for a longer period, the EMI is comparatively lower than for other loans. 4. Many Financial Products offered The borrower can use the property to mortgage and can avail of many lines of products. Right from project funding, a term loan to a working capital arrangement. Once the financial institution minimizes the risk with some kind of security, there will be many permutations and combinations set. 5. No Limit On Loan Amount There are always limitations while raising the amount in an unsecured form. However, under a secured one as long as the financials of the company and the mortgaged offered support, the borrower can get any amount in debt form, with no restrictions on it. There are some sets of solutions that need to be arranged while raising the higher amount, but yes that can be worked out. 6. Loan Prepayment Generally, loans are taken to expand the business or face the tough financial conditions of the business. However, once the tough time is over or the targeted project turns into good cash flow, promoters can repay the loan amount and can even minimize the debt burden. Eligibility for Loans Against Property in India 1. Age Factor  An individual should be a minimum of 21 years of age and a maximum until 65 years of age in order to secure a loan against property. Some banks also consider a minimum age of 18 years and a maximum of 70 years. 2. Loan To Value Ratio  Banks typically look for an LTV ratio of 60% to 70% while dealing with loans against property. This ratio varies from one type of property to another. It is highest for loans taken against residential properties but the lowest for loans against commercial properties. 3. CIBIL Score CIBIL stands for Credit Information Bureau India Limited. Banks and financial institutions give loans against property based on the market value or the registered value of the property. In case you have a low CIBIL Score, some financial institutions may give loans against property with a higher rate of interest or a higher margin. 4. The Tenure of the Loan The tenure for which a bank gives Loans against property in India varies from bank to bank. Generally, banks give loans for 15 years against the property. But there are some banks that give loans against property for 7 to 9 years. Learn more about the LAP execution process, Here. Procedure for loan against property Every bank has a different set of processes for LAP Facilities. Here are some fundamental steps which usually every financial institution follows: 1. Check if you are eligible and calculate the EMI We have mentioned some basic eligibility criteria above and there are specific eligibility criteria for each bank. Check the criteria and see if you are eligible for the loan. Calculate the approximate EMI that you would have to pay. 2. Property and legal documents The property against which you are taking a loan should have all the documents clean and ready. Some common documents asked for by financial institutions are Registered Sale Deeds, Past Sale Deeds Chain, the Latest House Tax Return, Approved Building Plans from Municipal Corporations, and so on.  3. Explore Loan against property interest rate offers After checking the documents, you can now research the interest rates and the different options available. There are usually fixed and floating rates. Fixed ones are generally a bit higher than floating ones. 4. Compare miscellaneous charges and loan parameters of the banks Financial institutions charge various additional fees in addition to the interest rate. Be aware of all their extra fees like processing charges, prepayment charges, and so on and so forth. We at Terkar Capital can help you with this entire procedure.   5. Other parameters While finalizing the financial institution or bank do check the other factors involved like the turnaround time of the banks, quick loan delivery, transparency, and other parameters. Try to read reviews of existing and past bank customers in order to help you decide. Evaluate your property with Terkar Capital At Terkar Capital, we understand that navigating the world of finance can be overwhelming, especially when it comes to securing loans against property in India. That’s why we strive to make the lending process as transparent and personalized as possible. Our expert team work tirelessly to understand your unique financial needs and

Overview Many of us aspire to see our projects succeed and gain recognition worldwide. All we need is a little push. It could be motivation, a brilliant idea or simply the lack of funds. In India, Project funding is one of the most important yet not widely known aspects for aspiring entrepreneurs. So, before going ahead with the process of how to get project funding, it is crucial to have a clear understanding project funding entails. How Project Funding is used in business ventures? There are different kinds of requirements at the time of starting a project. Project financing is among the most basic yet significant parts of any business venture. This entails obtaining funds to cover initial expenses such as labour, capital, and other necessities. However, Project Funding is provided for new business setups, reconstruction, or expansion of an existing business enterprise.  Criteria for Project Funding Project finance has provided considering certain important aspects on which the amount is decided. These are the relevant criteria to consider. 1. Project Viability Analysis: The viability of a project is determined by its economic merits and demerits. A project is considered viable if its benefits are higher than its costs. This analysis helps funding agencies assess the project’s worthiness for financing also taking the proposer ability to repay the loan into account. 2. Mortgage Available: Project funding involves providing loans based on the project’s value and potential revenue. Lenders assess the project’s potential to determine the loan’s viability. 3. Payback Period of The Project: Long projects without rapid revenue generation may lead to proposal rejection. Professional consultants can help draft proposals to increase funding chances. 4. Personnel Profile and Experience: Long projects without rapid revenue generation may lead to proposal rejection. Professional consultants can help draft proposals to increase funding chances. Location and Market Demand The location and the requirement of the product or the service the project seems to sell must be well enough to give the lenders assurance. The assurance, that the project will be successful and the borrower will be able to repay the loan in time as well. If the product is common and easily available, there are chances to get the proposal rejected. Project Funding Lenders Even though multiple agencies are operating in the debt market, there are limited sources to acquire project funding. The primary sources of such financing are usually government institutions and cooperative banks, which consider funding projects that meet their criteria. Considering the limited options available, So, finding a reliable funding agency for your project proposal in India is crucial. That’s where Terkar Capital comes into the picture. Secure Project Funding with Terkar Capital We are a financial institution known to provide maximum finance with minimum collateral. We even let young and beginner entrepreneurs build an eminent commercial organization. Whether you need funds periodically or in a lump sum, We can generate the necessary capital based on your specific requirements. At Terkar Capital, We ensure confidentiality and integrity. The processes we follow are transparent to our clients, and also the financial products are designed to benefit them, including HNIs, SMEs, and startup companies. Our goal is to assist our clients in creating a successful future