Loan Against Property

is actually a secured personal loan. This loan can be availed by mortgaging one’s self-contained ownership flat to a bank/financial institution and avail funds that can be used for any purpose except for gambling and speculation. The rate of interest charged by banks/financial institutions is slightly higher than that charged for home loans but it is substantially lower than the rate charged for Personal Loans / business Loans.

Home Extension Loans

are given if a person who currently owns a bungalow including the land parcel can avail of this loan if she/he wishes to raise a floor on the same plinth area. Income Tax benefits can be availed for such loans also ( as may be applicable).

Construction Loans and Land Loans

are given if a person wishing to purchase an open plot of land which has to be non-agricultural (NA) and later if that person wishes to construct house on that plot for self-use. For such cases banks/ financial institutions normally extend loans but it depends on the policies of the banks/financial institutions from time to time.

LEASE RENTAL DISCOUNTING

People normally buy residential or commercial units either for self-use or investment. If the reason to purchase is for investment than that person would earn lease rent from the said premises. This person can avail of a loan for buying another unit (either residential or commercial) by using the lease rental income as a source of repayment.

CONSTRUCTION FINANCE

Is the finance availed by builders/ developers for constructing a single building or a project consisting a number of building plus additional common amenities. Construction Finance or CF as it is commonly called can also be used for developing commercial premises.

BUSINESS LOANS

These Loans are given to self employed persons. They could be professional ( viz, Chartered Accountants, Engineers, Architects ) or non-professional
(manufacturers, traders, etc)