Udyog Loan Against Property: Your Queries Answered

Anyone who succeeds, questions everything! One of the richest man in the world, Elon Musk, once said, “One of the tough things is figuring out what questions to ask.” Once you’ve figured out the questions, the answers are just a tap away!

So, you are on the right path! Godrej Capital’s Udyog Loan Against Property (Udyog LAP) is a tailor-made loan for your business needs. It is also known as Micro Loan Against Property (Micro LAP) or Business Loan Against Property (Business LAP).

You asked your questions, and we are here to answer them!

• Can we take Udyog Loan Against Property with construction plot as collateral in India?
  Yes, you can! If you have construction plot with a clear property title, you can get Udyog loan against property in the form of a land mortgage loan. Make sure to meet the Udyog Loan Against Property Eligibility criteria and have a good CIBIL score.

Also Read: How to Build a Good Credit Score? Tips for Young Borrowers

• What are the factors to be considered before taking Udyog Loan Against Property?
  Udyog Loan Against Property (Udyog LAP) has been in high demand because it’s a secured loan. Udyog LAP is a loan provided by Godrej Capital, against existing property. Udyog LAP offers the joy of enjoying low-interest rates and longer tenure.

However, here are a few factors to consider before applying for Udyog Loan Against Property:

• Your Property’s Valuation
  Godrej Capital’s assessment of your property will determine the loan amount authorized under Udyog Loan against Property. The company will typically check the paperwork to ensure the property has a clear title. It’s preferred that all co-owners of the property also meet the eligibility criteria.

If all goes according to plan, the loan will be approved for up to 70% of the market value as measured by the Loan-to-Value (LTV) ratio. Remember that this evaluation will not consider any potential future value addition to the property.

• Udyog Loan Against Property Interest Rates
  Compared to personal and business loans, which are unsecured, Udyog LAP interest rates are offered at lower interest rates because it is a secured loan where you give your property as collateral.

Collateral loans or mortgage loans are usually preferred by people who need low interest rates. Secured loans are more affordable than unsecured loans.

• Loan Tenure
  When considering Udyog Loan Against Property, make sure to take the length of the loan into account. Godrej Capital offers a high loan tenure of up to 15 years. Therefore, if you are a paid individual in your 40s searching for Udyog LAP, you can be given a loan with a 15-year term presuming you will retire by 60. However, you will need to balance the length of the loan and your EMI payments.

Also Read: A Comprehensive Guide to Business Loan Against Property: Everything You Need to Know

• What is better in terms of interest for purchasing a shop - loan against my current home or commercial property loan?
  There are several factors that affect the interest rate. If you use your property as collateral, you will get a more affordable interest rate because there is less risk involved.

• What is the difference between Loan Against Property and Udyog Loan Against Property?
  Loan Against Property and Udyog Loan Against Property are both secured types of loans. In both these types of loans for business, you will have to mortgage your property. However, the loan tenure, interest rates, loan amount, eligibility criteria are slightly different. Visit the website to know more.

• I wish to apply for a mortgage loan against property. But the problem is the property is based in a rural area. I run a small trading business. I have had ITRs for the last 3 years. Will my loan get approved?
  Your loan will get approved if you have a clear property deed, good CIBIL score, repayment capacity, etc. However, your loan amount will depend on your property’s valuation and appraisal. After evaluating your property and Udyog Loan Against Property documents, the company will offer the amount based on the existing valuation.

• I want Udyog Loan Against Property for my new business and I have ITR of my savings. How is it possible?
  You can apply for Udyog Loan Against Property with ITR and high savings with a steady source of income. Every owner of a savings bank account is given a relationship manager. They can help you with the loan application process and put you in touch with the right person.

• How can I check about the Udyog LAP eligibility criteria for MSME loans? I already have an existing loan against property. Does it affect my eligibility?
  This situation has two sides to it. You may apply for two loans at once. Before approving loan applications, company considers several criteria, including your current income and outstanding debt. You must fulfill the second loan’s eligibility standards, which are the same as those for the first loan.

• How can I calculate my monthly EMI if I take Udyog LAP?
  With online Udyog Loan Against Property EMI calculator, you can determine your monthly EMI payments easily.

• I have multiple income sources. Am I eligible for Udyog LAP?
  Yes. Udyog LAP considers multiple income sources and offers higher eligibility. Udyog LAP for MSMEs is designed with unique needs of small businesses.

• What is Udyog Loan Against Property Flexi Funds? Can I get an instant loan with Flexi Funds?
  Udyog LAP Flexi Funds is overdraft-like facility. With a pre-sanctioned limit given to you, you can withdraw and repay as per your convenience. The best part of this facility is that the interest is charged only on the amount utilised. This facility can be availed in just a few click on your device. Thus, you can skip lengthy loan process and have access to funds based on your business requirement.

Also Read: Udyog Loan Against Property versus Udyog Loan Against Property Flexi Funds: What Should You Choose?

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Disclaimer:

The contents of this article are for information purposes only and not a financial advisory. The information is subject to update, revision, and amendment and may change materially.
The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Godrej Capital or its Affiliates to any requirements.
Godrej Capital or its Affiliates shall not be responsible for any direct/indirect loss or liability incurred by the reader for making any decisions, financial or otherwise based on the contents and information mentioned. For more information, please visit www.godrejcapital.com