Getting a new business off the ground can be a daunting task, both financially and otherwise. In terms of mortgage eligibility, as a first-time entrepreneur, you can be barred from a number of loans. However, one source of financing you can count on is a real estate loan (LAP). For this secured business loan, you must mortgage a residential or commercial area of your property for financial assistance. This loan can be used for whatever purpose you want and it also offers attractive payment options.
You can get a large number of loans
Today, there are several government programs that offer small business loans, minority business loans, and even small business loans for women. However, if you need more financing, get a real estate mortgage as you get a percentage of the market value of your property as a loan. This amount can reach millions of rupees.
Interest rates are nominal
Real estate secured business loans have low-interest rates as lenders get more repayments. Whether you need a loan to start a business or a job loan to help you run a business, home loans ensure your finances don’t run out. However, you should review the lenders’ offers to get the cheapest interest rate.
You can pay in long installments
Homeownership loans are one of the best start-up loan solutions because they allow you to pay long term. They often live to be 18 or 20 years old. Therefore, you can use real estate loans as collateral to quickly finance your project and not worry too much about EMI as it can be limited by extending the repayment period.
The eligibility conditions are simple
Obtaining a secured loan is easy as your eligibility is not based on your income alone. Since your project has not yet started, securing it with collateral can help you successfully obtain a loan. Everything you need to make sure your assets are litigation free.
You can tailor your loan to your business needs
The most effective way to meet the ongoing needs of your business is to obtain a Bajaj Finserv home loan and take advantage of the Flexi Hybrid facilities. With flexible loans, you can borrow money on the go with the approved authorization, depending on your business needs. The advantage is that each time you apply for a loan, you only pay interest on the amount withdrawn and not the entire penalty. Also, since your business generates returns, you can use the excess funds to prepay and even lock your loan at no additional cost. Another factor that distinguishes flexible loans from other secured business loans is that you can only make EMI interest payments during the first 4 years of the term.