How Can Doctors Get Benefit From A Loan Against Property?
Rahul always wanted to be a doctor and save lives. So, all his education was also focused towards achieving this dream. With determined efforts and never give up attitude, he was successful in becoming one. After practicing for a while with some private hospitals, Rahul decided to start his own clinic in one of the remote areas. This would help him serve the people better and they would also get quality treatment. Rahul had a home in his name and he decided to use that property as a mortgage to avail a Loan Against Property for Doctors. Since Rahul was an established doctor, he got faster loan approvals.
Loan against Property is very beneficial for Doctors as they can easily avail a loan. But knowing the loan’s benefits, here is a quick look at what the loan means and how it works:
What is a loan against property and how does it work?
Loan against Property is granted against the value of a property which the borrower pledges to secure the loan. It is, thus, a secured loan where the security is the property.
The quantum of loan depends on the value of property. Lenders usually allow 60% to 80% of the value of the pledged property as a loan. For instance, if a property worth Rs.50 lakh is mortgaged for a loan against property, borrowers can avail Rs.30 lakh to Rs.40 lakh as loan depending on the lender’s lending practice.
Also Read : Loan Against Property – A Multi-Purpose Loan
Benefits of loan against property for doctors setting up a clinic:
Rahul wanted to set-up his own clinic and a loan against property was the ideal solution for him. Here’s how it benefitted him:
• Lower interest rate:
A loan against property is a secured loan. It is offered against the mortgage of a property owned by the borrower. If the borrower defaults, the lender can sell the mortgaged property for paying off the outstanding loan. Since the lender’s default risk is low, the interest rates are also low. Rahul opted for a loan against property for the lower interest rates. He was, thus, charged a lower EMI and saved on interest payments.
• Approved easily with low chances of rejections:
Since this is a secured loan, the lender approves the loan after assessing the property’s value. The loan is, thus, easily approved and there are almost no chances of rejection of the loan. Rahul experienced the easy approval process himself since he was already a doctor. Besides, the property he pledged against the loan amount was more than the loan amount. So the lenders were okay to trust Rahul with the loan.
• High maximum limit of loan:
While other loans have a limited maximum amount available, a loan against property has a maximum quantum of Rs.3 crore. The loan is allowed based on the value of the property. If the property has a higher value you can avail a higher loan and vice-versa. While a personal or business loan limited Rahul’s borrowing eligibility, a loan against property gave him a sufficient loan amount based on his property’s value.
In a nutshell:
These benefits, coupled with the easily available finance, enabled Rahul to set up his clinic. He selected a prime location in the village for the clinic for maximum exposure. Since he was able to avail a higher quantum of loan, he stocked his clinic with all modern and technologically advanced equipment. Rahul, thus, opened his clinic and expanded his practice.
What about you? If you are also looking to expand your practice and open a clinic, avail of a loan against property today.