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Loan Against Property based on rental income

Loan Against Property based on rental income has been developed as a new sector based on the growth potential in the real estate in various metros and urban centers in the country. In Chennai, where many commercial properties/shopping malls are being developed and the many owners often approach banks or financial institutions for loans against property of future rent receivables.

In order to cater this segment and address the financial requirement of people renting properties, banks and financial institutions such loans. These loans are commonly known as Loan Against Rents Receivables (LARR), under which they provide the customer’s the loan against the expected future rentals of their property. Many financial institutions also offer loan against property based on rental income.

Why Loans against Property based on income is the best ?

Home loans and Loans against property based on incomes are two types of loans with the benefits that make them ideal for different situations. If a customer is looking to buy a house, availing a Home Loan would be the best option since it’s the very reason that ‘Home Loans’ are offered. If the customer is in need of quick funds, taking a loan against their property is a good option. They can pledge your property as collateral and use the funds for any activity they wish for; the lender cannot question what you spend the money on. It’s not difficult to decide which of these loans are better, because both these loans are utilised for completely different purposes.