A Loan against Property is the most preferred type of secured loans these days. It is a secured loan where borrower has to pledge his/her property as collateral to lender in exchange of loan money. When you “Apply For Loan against property“ the lender gets security for lending cash to the borrower, therefore mortgage loans have lower rate of interest.

However, there is a myth that one can pledge his/her residential property to avail a loan against property but here in this article, we will guide you about different types of properties that can be put as security to secure a mortgage loan:

Residential property: This property is one’s personal place of residence and permanent stay. It may include a flat, building, villa, mansion or even a vacant land. One can pledge his/her residential property whether it is self occupied, rented or vacant. You can mortgage your property as long as it is registered in your name. Thus, pledging your property with lender ensures a lowest possible interest rate as well as flexible repayment tenure.

Commercial Property: It is a type of property that can be used for other purposes than residence. When these properties get used for business purposes and starts generating income for you, then they get qualified as commercial property.

The property might include school, offices, gyms, warehouses, hospitals, retail stores or any other factory outlets. Borrowers can pledge vacant or rented commercial properties as long as they are free from any legal dispute on ownership as well as title existing on the space.

Co-owned Property: As name reflects, it is the property that is owned by two or more individuals. One can pledge this property if he/she is a co-owner but they have to get other co-owners on board to sign the loan application. It is easy to secure a mortgage loan for married couple as lender considers marriage a contractual relationship in terms of law. It is good to talk lender beforehand, if you want to apply for loan against property for a co-owned property.

Industrial Property: These are the properties which are used for manufacturing and developing units or for the production of goods and products. Any individual can pledge an industrial property for loan against property, but the approval on application varies from one lender to other. Some of the lenders do not consider the industrial spaces as security while others do.

Now when you know the different types of property for mortgage, you can move further to understand which type of space fulfils your eligibility and fits your pocket. One can use the loan money for different activities such as higher education, wedding expenses, medical emergencies or high interest debt consolidation. You just have to submit the original property papers at the lending institution until you repay the loan.

At ShubhBank, anyone can “Apply For Loan against property Online“ or offline irrespective of residential, commercial or industrial spaces because we keep your interests at heart and offer you best possible rates of interest, high loan value, flexible tenures and zero hidden charges.