Cash-flow crunch? Don't sell but mortgage property

VASANT VIHAR, India - Nov. 21, 2016 - PRLog -- In the face of dire financial crisis, most people resort to selling their property to get out of the mess and sustain themselves. However, in the long run it may prove to be a terrible decision. Other than the emotional bond that is associated with property, it is an asset that appreciates with time. Selling it should be a choice made only and if all else fails. Instead of selling, it may be wiser to mortgage your property for a loan. While the risk of losing your property is still high, at least your chance of retaining it is higher.

Also known as loan against property, these loans can be availed on both residential or commercial properties. They are available at low interest rates and long tenures from banking and Non Banking Financial Institutions (NBFI) like Hero FinCorp.

Given the secured nature of these loans, many financial institutions offer attractive interest rates and flexible plans. Thus it becomes imperative that you research and compare the offerings of different financial institutions before arriving at a choice.

Understanding the compulsions leading to a mortgage, Hero FinCorp have formulated convenient, easy 'loan on property' schemes. Manufacturers, traders and service providers are eligible for a loan and the minimum age of the applicant is 25 years. The repayment period offered is up to 15 years and the minimum income at which one can take a loan is Rs. 15000 per month. One must keep in mind that the property being mortgaged should be over 50 lacs in market value.

It is important to remember that a loan is disbursed only for personal or business activities not speculative or unlawful activities.

At  Hero FinCorp, the process for getting a loan against property is quite simple involving just few steps:


- evaluation of the applicant and their business
- valuation of the property given as collateral
- If everything checks out, quick sanctioning of the loan

Usually the loan amount is determined basis the repayment capacity of the applicant. The factors taken in to consideration to evaluate repayment capacity include the income, age, qualifications, dependents if any, spouse's income, assets, liabilities, savings history and employment details such as stable job history and tenure left in the current occupation. As a norm, you receive a certain percentage of the pledged property's market value as the loan amount. At Hero FinCorp, the eligible  loan amount offered does not exceed 85 per cent of the cost of the property given an collateral.

A loan against property is the best if not easiest way to raise money when you need it the most. https://www.herofincorp.com/loan-against-property

About Hero FinCorp

Founded in 1991, Hero FinCorp is an associate company of Hero MotoCorp, India's largest two wheeler manufacturer. One of the fastest growing non banking financial institutions in India, Hero FinCorp provides consumer finance, like loan against property and two wheeler loans, and commercial lending options. Currently Hero FinCorp is present at close to 2000 retail financing touch-points across Hero MotoCorp's network. https://www.herofincorp.com/