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Why Should You Avail a Micro Loan Against Property?

Clix January 21, 2021

 

Micro Loan Against Property is a type of secured loan for which the lender keeps your property as collateral. Also known as Mortgage Loan. Whether you want funds for your personal or business needs, you can secure this loan against your property and pay it over a period as long as 15 years. The lender keeps your property as collateral until you pay the entire loan amount.

 

MUST READ: ALL YOU NEED TO KNOW ABOUT A PERSONAL LOAN EMI CALCULATOR

 

While a collateral-free personal loan is limited up to ₹ 15 lakhs, a Micro Loan Against Property can be a great alternative to secure a loan of up to ₹ 1 crore. Instead of 48 months, you also get 15 years to repay it in easy monthly instalments, that too at comparatively much lower interest rates. Whether you want a loan for debt consolidation, higher education, wedding, home renovation, medical emergency, expand capacity, meet capital requirements, or any other personal or business purpose, this loan type can cater to all your requirements with easy repayment options.

Features of Micro Loan Against Property

At Clix Capital, we offer the fastest loan approval in India. Here are some of its features:

High Loan Amount: You can get MLAP of up to ₹ 1 crore.

Quick Disbursal: You may get your loan processed quickly. Just provide your phone number

Lower Interest Rate: Since it is a secured loan, this type of loan carries a lower interest rate than an unsecured loan. Lower interest rates mean easier EMIs and less financial stress. We also offer floating interest rates, which you can choose as per your repayment capacity.

Easy Application and Approval Process: Even if it is a secured loan, the application and approval process is quite simple and quick.

Easy Repayment Tenor: Loan tenure for MLAP may be as long as 15 years, which means you have a longer timeframe to repay it at your convenience.

Minimal Documentation Requirements: Documentation requirements are quite simple and minimal. However, they are different for salaried and self-employed applicants.

Easy Eligibility Criteria: Eligibility conditions to apply for a Micro Loan Against Property are extremely easy to fulfil.

Flexibility to Use the Loan Amount: There are no restrictions on the end-use of the sanctioned loan amount. Once your loan is disbursed, you are free to use it as per your requirement.

Eligibility Criteria

Any person who meets the following eligibility conditions can apply for a Micro Loan Against Property at Clix Capital:

    • Minimum age: 22 years at the time of loan application
    • Self-employed or salaried professional.
    • Age below 65 years (60 years for salaried individuals) at the end of loan term.
    • Minimum annual household income of ₹ 3 lakhs.

Documentation Requirements

If you meet the above-mentioned eligibility conditions, here are a few documents you will have to provide:

    • Duly filled online application form
    • Recent passport size photograph
    • Identity proof like Aadhaar card, Pan card, or Government ID for government employees
    • Address proof like Aadhaar card, passport, voter ID, or driving license. The last 2 months’ utility bills may also work

While the above documents are required by all loan applicants, here are a few different documents that salaried individuals and self-employed professionals have to provide:

For Salaried Individuals:

    • Salary slip for the last 3 months
    • Copy of the latest of Form 16
    • Latest bank statements that show salary and saving entries for the last 6 months

 

For Self-Employed Professionals:

    • Business profile, including the nature of business or profession.
    • Form of organization, suppliers, clients, etc.
    • Last 6 months’ bank statement for the main operative bank
    • Last 2 years’ income tax returns
    • Last 2 years’ financials, including profit/loss accounts and balance sheets

Collateral Requirements

As a general rule, the collateral you provide against the MLAP is the first charge of the asset to be financed. Under such circumstances, you need to deposit the title deed of the property. However, make sure that the property title is marketable and should not have any encumbrances.

Factors Affecting your MLAP Interest Rate

Although the interest rate for Micro Loan Against Property is lower than unsecured personal loans, certain factors can further influence your applicable interest rate. Some of them are:

Loan Tenor: The repayment tenure you choose for your loan’s repayment largely influences the interest rate you have to pay for it.

Credit History: A good credit history marks you as a trustworthy borrower. The higher your credit score is, the lower the interest rate you have to pay.

Property Type: Our experts check the type and value of your property, based on which they sanction a loan amount and charge a specific interest rate for a loan against it.

Applicant’s Profile: The age, income, and occupation of the applicants also decrease or increase the applicable interest rate.

Preparing for a Micro Loan Against Property

Before you apply for a Micro Loan Against Property, look for a lender who provides a competitive rate of interest with flexible repayment options. Doing this will save you from any mistakes and surprises later. Go through the lender’s eligibility conditions and try to fulfil what you lack.

Start preparing for the loan application by improving your credit score ahead of time. Your credit history will play a major role in the approval or rejection of your loan application and determining your interest rate and loan terms. So, start paying your bills on time and stop missing your payments. Over time, your credit score will improve and you will have better chances of loan approval on favourable repayment terms.

Micro Loan Against Property is an easy option in India to fund your personal and business goals without hassle. With an easy application and approval process and flexible repayment terms, you can put your loan amount to the intended use and repay it over 15 years.

Looking forward to converting your asset into an easy source of funds? Get in touch with us and apply for MLAP now.

For any queries, find us on Facebook, Instagram, Linkedin, Twitter, or Whatsapp

You can also reach out to us at hello@clix.capital or call us at 1800 200 9898

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