How can I utilize a loan against the property?

The loan against the property is the better option to opt for when the borrower needs some liquid cash in hand. The applicant needs to submit all property documents before applying for the loans like government id proofs, property documents with clear titles, bank statements, income tax returns[ITR] should submit related to the bank. The bank also requires to check the customer’s CIBIL score to verify the attitude of the applicant towards the payment of the bills availed on a credit basis. The applicants with excellent ratings are given the highest preference for the loan approval as the applicants are regarded as amongst the most honest buyers as are amongst the most preferred customers for the lending financial institution. At the same time the low and poor scorers are amongst the least preferred customers for the financial institution.

The loan against the property when it has opted for the borrower gets liquid cash in hand. The liquid cash borrowed can be utilized for business expansion purposes, interior design, travel purposes, educational purposes, marriage purposes.etc. The borrower who has to submit & mortgage the documents can get the documents back after the repayment of the principal amount plus the interest amount. The liquid cash obtained while loan against property can be said as a personal loan or home loan as the borrower may utilize the funds for housing purposes as well. The borrower can avail of income tax benefits only in case of the interest payment is liable to be done to the bank.

Following are ways in which the borrowers can utilize the funds for the loan against property:

· Home loan purpose:

The borrower can utilize the funds for buying another property so as to utilize the liquid cash obtained and make another property. The borrower needs to mortgage the property documents to the lender so as to avail the liquid cash in hand and then can get the documents back after complete repayment of the principal and interest amount. The borrower has the opportunity to expand the number of properties by availing of a loan against the property. As there is surety of the recovery, the loan gets approved very fast and the borrowers can avail loans and the liquid cash to purchase the property. Also, on the home loan installment, the borrower can benefit only from the income tax rules only on the interest amount. Opting for home loans against the property can help improve an individual assets and thus help in becoming more prosperous.

· Educational purpose:

While opting for the loan the educational purposes, the borrower can use of the loan against property. The borrower can fund the money for foreign education as well as domestic education purpose. Education is one of the essential parts of an individual living on the basis of which an individual can grow and prosper. Thus most of the individuals,in case of falling short of funds,may opt for this facility if the applicant has a property to the mortgage.

· Marriage purpose:

The marriage is another purpose wherein the borrower is in need of the money ,and hence there could be an urgent need for liquid cash so as to conduct the function. Marriage is regarded as a major ceremony in India and requires huge expenses. The wedding functions expenses are given high priority and Indian wedding are known for a lot of expenditure. Thus liquid funds emergency arrangement is a must necessity, which can be obtained from a loan against the property.

· Travel purpose:

The borrower may wish to travel to some exotic destination for which the customer may require to get some liquid cash in hand. Thus the borrower on receiving the liquid cash thus can spend the amount of money to travel to exotic destinations and enjoy a quality life. The travel loan can help borrowers travel to exotic destinations even without having adequate funds.

· House Renovation purpose:

The borrower can do house renovation of the property through the loans availed. The borrower can utilize the funds by opting for the loan against the property and make the house look decorative or beautiful & attractive

The home interior purpose is one of the most luxurious parts which the borrowers can avail of by utilizing the funds.

· Business expansion purpose:

The business expansion is also a major for which the loan against the property funds can be utilized. The funds utilized for business expansion can help individuals expand their own business and gain maximum profits out of the funds being utilized. The borrower can benefit in the best possible way out of this loan as it is a high-yielding returns-based opportunity for an individual.


The borrower can opt for a loan against the property so as to utilize the funds for the business expansion, housing purpose, house renovation purpose, marriage or, travel purpose. It is a better-recommended option for an individual to opt for a loan against the property as the borrower does not need to replenish all the savings to satisfy any individual need.

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