How Can You Use A Mortgage Loan To Grow Your Poultry Farm
- Processing a loan against property is simpler and easier
- The flexi hybrid feature enables you to pay the interest only on the utilised amount of loan
- You can avail a pre-approved loan
As a poultry farmer, you would know that it is a sustainable business. Given the many reasons why poultry farming is profitable, you may want to expand the business further to add newer avenues or purchase essential equipment to raise the birds or even need the funds to market your business. A viable funding option to finance your organic poultry farm could be a loan against property.
With the loan against the property for a business startup, a lender offers a certain percentage of the market value of your property as a loan. This certain percentage can go up to 70% depending upon the lender policies.
You may want to consider mortgaging your poultry farm or any other property to cover the costs of your future expenses.
Higher Amount Loan
Brood houses and equipment, which keep a controlled climate in the coops, help chickens thrive and create an overall conducive environment for the birds. However, to maintain the necessary infrastructure, it is essential to have the requisite capital. A Loan Against Property in India can help you avail a loan for a higher amount. With you can avail a loan against property up to an amount of Rs. 3.5 crores. Based on your collateral and your repayment capacity, you receive the appropriate amount due to you.
Simple Loan Application Process
There are numerous aspects checked by lenders when you apply for an unsecured loan, which could impact its approval. However, with a secured loan like a loan against property the scrutiny process is quicker and more straightforward. Once you fulfil the loan against property eligibility and submit the loan against property documents required your application is speedily approved, and you receive the loan amount without any delays. To know more on loans against properties, click here
Low Interest Rates
While collateral is attached to a loan against property, lenders are given a safe contingency plan in case of default. This is why interest rates on loan against property are lower than other loans. The interest rates that the lender offers you is also dependent upon the amount of your collateral. Loan Against Property Interest Rates are flexible or fixed depending on lender policies. You could avail a mortgage loan with at an interest rate varying between 10.50% to 14.50%
As a poultry farm owner, you are seeking to expand your business to new horizons. Under such a scenario, repaying a loan in a short frame of time can upset the balance and budget. Hence, you may want to consider a mortgage loan with a longer tenor. With you can avail a loan up to 18 years. Moreover, a longer tenor leads to lower monthly EMIs as it is distributed over a longer period of time.
Flexi Hybrid loan
Before you avail a business loan, you may have a certain amount set in your mind to meet expansion plans. However, during execution you may not use the entire sum, but because you have obtained the lump sum amount, you are entitled to pay an interest on it. With flexi hybrid feature, you get to pay only the interest as the EMIs during the initial tenor and not on the whole amount. This helps to reduce your EMI outgo as interest is charged only on the amount utilised.
Some lenders provide a pre-closure facility on the loan against property. This means you can pay off your liability sooner than the loan duration. With a flexible interest rate, you can prepay your loan without paying any penalties. Fixed rate options have repayment penalties that you may want to look into, before availing it.