Give your old Delhi Home a Makeover with a Loan Against Property

Many parts of Delhi still hold on to their old houses and havelis. While some still radiate that old-world charm and grandeur, many have been ravaged by time with no restoration. Decades later most old family homes resemble tumble down-town houses held together by fluted columns and slender stairways.

If you own a culturally rich property, you might want to consider a formal restoration plan. After all, it is your ancestral home, and your future generations would love to be raised in such a heritage structure. However, if finances are a problem, you could always consider a loan.

To restore a big house, you would have to look for a large loan. A popular option is to take a loan against property for home renovation.

Keep reading if you’re interested in a loan against property to renovate your old home.

What is a Loan Against Property?

A loan against property is a secured loan. You have to offer collateral for the amount you receive.As the name suggests, the collateral you provide becomes the security for the funds you receive in exchange. A Mortgage Loan Interest Rate is usually lower than most loans too. Since it is a secured loan, the risk on the lender is reduced. This gives him the ability to offer you a low-interest rate.

Your lender then evaluates the property’s market value and gives you a certain percentage of it as a loan amount. Depending on your financial profile and the lender’s policies, you could stand a chance to get up to 75% of your property’s value. Both banks and Non-Banking Financial Companies (NBFCs) offer this loan.

It is easy to get a loan against property too. The loan against property eligibility criteria can help reveal the real value of your property without misrepresenting it in any way. Here are a few other things to avoid when applying for a loan against property. In addition to your property, there is also some loan against property documents you would ned to submitwhen applying for the loan.

Once you get your documents in place, take the loan to renovate your old home.

Benefits of Loan Against Property for Home Renovation

You get a Large Loan Amount

Property values are usually high in India. Even if you get up to 50-70% of your property value, it is most likely going to be a large amount. This large amount could prove helpful when restoring an old family home or haveli in Delhi. The loan amount you get when you take a loan against property is comparatively much higher than most other loans.

Additional Read:Renovate your Home this Diwali with Loan Against Property

You get Usage Flexibility

There are many loans in the market, but most of them have rules that could restrict the way you use the money. You might even have to give the lender an official estimate of your expenses when applying for the loan. A loan against property has no such criteria that restrict the use of the loan. You have complete usage flexibility to spend as you wish. You could use it to not only restore the place but also add to its décor. 

You get a Long Repayment Tenor

A loan against property comes with a long tenor spread across many years. You could pick a tenor ranging of 15-20 years. This way your monthly EMIs do not get high and might even fit in your monthly budget comfortably.

Unlike popular myths about loan against property in India, you don’t necessarily have to provide your residential property to avail this loan. You can offer your shop or office as collateral. If you own vacant plots around Delhi, you can also promise them as security to get a loan against property.

Renovating an old house in Delhi is likely going to be an expensive affair but it important you take care of such structures. A loan against property is an option worth considering when you’re looking for a large amount with a low-interest rate and a longer tenor.