Loans against property are secured loans that involve any residential or commercial property, being used as mortgage for the loan. Doctors, whenever they face a shortage of funds can avail this loan, provided they own a property to be mortgaged. Being secured in nature, the rates of interest charged by lending institutions are quite low. Certain lenders (for example Bajaj Finserv) provide convenient facilities to applicants like availing loan against property for doctos from the comfort of their homes. The maximum amount than can be borrowed in this case is quite high, and is capped at around INR 2 crores.
Select lending institutions provide flexi loans to eligible applicants. In these loans, the applicant utilizes the sanctioned amount by making withdrawals as and when needed, up to a specified tenure and until the amount is exhausted. There is no one-time lump sum disbursal, but it is more about using the funds when they are actually needed. During the tenure, the applicant needs to pay interest only on the amount used and after the end of the tenure, the amount utilized, i.e. the principal is to be repaid. Flexi loans are not as commonplace as the other term loans because they are a comparatively new debt product that makes repayment and management of the loan much easier.
As mentioned earlier, doctors can avail a loan against property by mortgaging their residential property such as an apartment or house. Alternatively, they can choose to use their clinic or any other commercial property they own as mortgage for the loan.
Keeping in mind the fact that the field of doctors are starkly different from the legal and technical aspects of purchasing a property- there is a unique feature called the property dossier to assist doctors with these aspects. From information about the legal to price related factors based on the property index of the city, the dossier is a comprehensive guide.
Before availing a loan against property, there are a few more things to look into- to learn more about them, this resource should be of help:
Aman Khanna is an experienced financial advisor who is well known for his ability to foretell the market trends as well as for his financial astuteness. He has an MBA in finance from Toronto University as well as years of experience delivering seminars on sound financial practices and debt management.