How can immovable property be used to raise bank loans?

Last updated on Jun 7, 2022

Land and housing are valuable assets, and as an owner, you can choose to seek a bank loan by using the property as a collateral. A ‘collateral’ is a valuable asset that a borrower offers as an assurance against which they can secure a loan. If you are unable to repay the money, you may lose ownership over the asset which you have offered as a collateral to the lender. For the lender, the collateral acts as a safety net.

When seeking a bank loan (business, education etc), especially when it is for a higher amount, banks require individuals to offer some asset as collateral for security. For this purpose, you can offer either self-occupied residential or commercial property. You will be required to provide proof of ownership in the form of title deeds at the time of registering for a loan. The banks decide the credibility and the value of the land / house being offered as a collateral against the requested amount for the loan. Generally, the chances of approval are high when using a land or housing property as collateral.

How useful was this post?

Click on a star to rate it!

Average rating 0 / 5. Vote count: 0

No votes so far! Be the first to rate this post.

As you found this post useful...

Follow us on social media!

We are sorry that this post was not useful for you!

Let us improve this post!

Tell us how we can improve this post?

Leave a Reply

Your email address will not be published. Required fields are marked *

Have a question you want to ask our legal experts?

Related Resources

Can I purchase a foreclosed property?

Foreclosed properties are generally expected to be auctioned off at rates lower than their true market values.

Who do you complain to if there has been an issue related to buying or selling property?

You can approach the court to raise disputes over land and property for various reasons including claim on ownership etc

Types of Consumer Complaints

Complaints may be filed regarding e-services, misleading advertisements, restrictive trade practices, spurious/defective goods, food etc.

What is a Residence Order under Domestic Violence law?

If you are being thrown out of your shared household (house) by your harasser, the Court can issue a residence order in such a case.
Crimes and Violence

What should I consider when I am buying a house or land?

Two aspects to consider when buying a land or house, is knowing whether price of house is fair and dispute free ownership.

Can I get a bank loan to buy a property using the same property as the collateral?

Yes. You can get a loan from the bank to purchase an immovable property by using the same property as the collateral/security.