Just imagine you need some funds for your new business but banks are not willing to fund the new innovative business model. You don’t have much savings to fall upon to fund your dream project. You can still get a loan by mortgaging your property for that loan. In banking parlance, it is referred to as Loan against Property (LAP).
You can get a Loan against Property (LAP) against your existing residential or commercial properties. However, the value of the loan you can avail of primarily depends upon the valuation of the property. Further, the bank and financial institutions need to have sufficient cushion towards decline/ erosion in the value of the property so mortgaged. This is where the concept of Loan-to-Value ratio comes in.
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About the SME
Surendri Design, a well-known fashion design SME started operations in 2013 with the aim of becoming the preferred shopping destination for women across age groups. The brand has since become a popular name in the celebrity fashion circuit, and showcases its designs at renowned fashion events across the country.
Continue reading “Loan Frame empowers Gurugram Designer to expand and scale new heights”
Dr. RP Singh is a consulting doctor working at a large hospital based out of Delhi with an entrepreneurial streak. He wished to start a new business, managing lab machines for clinics. Given the large, upfront capital investment required, he needed to get a business loan. However, getting a loan for his start-up at a reasonable cost was proving to be nearly impossible given the absence of a track record and the multi-geography nature of work and collateral.
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