How Can a Loan Against Property Help You Expand Your Business?

A Loan Against Property (LAP) is a secured loan where you pledge your property, whether residential or commercial, as a collateral to obtain funds. The lender evaluates the value of the property and extends a loan amount based on its market value. LAP can be a favourable loan option due to its lower interest rate, as compared to an unsecured loan, and flexible end-use. 

Business Expansion with LAP

Expanding business can require a consistent inflow of capital. Expanding into new locations, acquiring official real estate, opening a new factory, or maintaining current operations necessitates a large upfront investment. This is where a Loan Against Property can help you make your business dreams come true. 

​​​Here are the different ways in which a Loan Against Property for businesses can prove to be useful.  

Business Expansion

Business, expansion requires a significant amount of funding at various stages. When opening a new location, businesses can consider funds required for buying or renting office space, purchasing equipment, and training new employees. This is where a Loan Against Property can be a useful financing option. In addition to these expenses, funds can be used to secure the necessary supplies before launching your new facility's operations.  

Long-Term Capital Needs

Loans Against Property can help businesses with access to long-term working capital to cover their regular bills such as rent, electricity, and employee salaries, among others. This form of financing can be beneficial for small and medium-sized enterprises (SMEs) that may require a steady flow of cash to run their operations. 

With the funds obtained from a Loan Against Property, businesses can cover unforeseen expenses without slowing down their operations.  

Acquiring Machinery and Related Items

As a business owner, you may need to buy equipment for your company, but you might not have enough funds to purchase the latest machinery and tools that your business requires. In such cases, a Loan Against Property can be a helpful solution to fund the purchase of necessary equipment. 

Additionally, if you need to upgrade your products to stay competitive in the market, you may require updated machinery and gear. This loan can help you with these investments and ensure that you always have access to the most cutting-edge tools and technology.  

Overhaul Your Marketing Strategies

Advertising and marketing activities can be expensive. For instance, targeted marketing strategies can be highly profitable, but they can cost a significant amount of funds. Using a Loan Against Property can provide the necessary capital for such business expansion efforts, enabling you to invest in required marketing initiatives. 

Documents Required for a Loan Against Property

To avail of a Loan Against Property, you need to have the following documents: 

For Self-Employed Applicants: 

• PAN Card or Form 60 (mandatory), Aadhaar Card, or Voter’s ID Card. 

• P&L statement 

• Latest ITR 

• Property documents 

For Salaried Applicants: 

• PAN Card or Form 60 (mandatory), Aadhaar Card, or Voter’s ID Card. 

• Last 3 months’ salary slips 

• Property documents 

Note: This list is indicative. Additional documents may be needed during loan processing. 

How to Apply for a Loan Against Property?

The steps to apply for a LAP are simple and the application journey is hassle-free. Follow the steps to complete your application successfully: 

1. Visit the Loan Against Property application form on our website. 
2. Enter all the requested details in the online application form.  
3. Then, enter your PIN code and the required loan amount. 
4. Next, enter the requested OTP and other details related to the property. 
5. Click on ‘Submit’ the application form. 

Once the form is filled in and submitted, our representative will contact you to walk you through the next steps.  

The property, your profile, and documents are then verified and post-approval, you can receive funds within just 72 hours*.  

Business expansion requires long-term working capital and to finance it a Loan Against Property for business can be one of the most cost-effective methods because of the low interest rates and the flexibility to repay the loan over a long period.  

Read Also: Loan Against Property for Start-ups