Loan Against Property for Self Employed – Complete 2025 Guide

It is a secured loan where the property is pledged to borrow the amount from the bank. The loan can be availed against property owned by the borrower for residential, commercial or as an industry purpose. In comparison to business loans, loan against property for self-employed is a better option when self-employed individuals want to meet any kind of personal requirements with a bigger amount and need more repayment time with less interest rates. A loan is provided by the banks which is usually 50%-80% of market value of the property mortgaged, depending upon the type of property (i.e. residential, commercial or industrial).
 

Why should one opt for Loan against property for Self-employed?
 

Loan against property for self-employed is a good option for the self-employed individual.  Loan against property for self-employed offers wider benefits to the customers in comparison to other loans like a business loan.
 

Considering most financial institutions offer it easily, it is conveniently available as a secured loan.  Loan against property for self-employed has better tenures and a bigger amount is sanctioned against property. Also, interest rates are much lower to business loans. Hence this makes it a preferred option.

Why  Choose LoansJagat?
 

We take pride in having the expertise to cater to the requirement seamlessly since its inception which is 2002.  Our dedicated loan expert provides you with excellent customer experience, our efforts have been recognized by various institutions and we have an association with 40 banks and NBFCs which gives customers a wide range of option to choose from. We are a process-oriented and digitised company that safeguards the interests of customers and ensures the confidentiality of their personal data. 

Going to take Loan against Property for self-employed. Avoid these mistakes!

Loan against property for self-employed is the most popular product offered by the bank, it is a secured loan and one should be clear about the details of the product before taking it.
 

Raghav runs a travel agency. In order to expand his current business valuing Rs.50 lakh, he wants to take Rs.25 lakh as a loan in order to expand his business in other cities. Following mistakes should be avoided while filing a loan application to ensure a smooth loan experience:
 

Clear Property Chain - Clear and Complete property papers chain of the property should be in place. Along with clear knowledge that not the entire amount basis valuation of property can be expected as a loan from the bank. Hence, it's better to have a proper study about your property papers and its past buyers and sellers to access loan easily.

Rates - Business loan interest rates are more than loan against property for self-employed. In case the bank is charging you more or equivalent to business loan rates than it's better to check with other financial institution. LoansJagat helps businesses to get a clear comparison.

Ownership - In case property has co-owners, it is better to have their documents in place as well along with their consent without which documentation can be on hold.

Custody - Be very clear to read the terms and conditions like ownership and charges in case of late payments or inability to repay back the loan. The borrower has the right to utilize the pledged property, but the bank has the right to take it when one defaults.

Always take a well-informed decision!