Ask Mint | Loan against home offers long tenor
Ask Mint | Loan against home offers long tenor
I am self-employed and have a few small businesses. I keep rotating money through personal loans into each business and was managing fine until the downturn, which affected my projects. My debts are mounting. How can I put all this on track?
—Janardhan
If you own a property, you can opt for a loan against property. The loan amount would depend on the value of the property and can range between Rs1 lakh and Rs3 crore. Also, the tenor of this loan can be as long as 20 years. Though it means you will be paying interest for a longer period, these loans come with lower interest rates. You will be able to generate enough funds to close all your loans in one go and even have enough money left for your business.
Also, try and see if you can merge all your businesses into one holistic business plan aiming for consolidation and higher profits. This will help you manage your overheads better.
I recently inherited a lot of funds from an aunt. Around the same time, I finalized a deal on an independent house that I wish to buy. The loan process has also been initiated and I am in a dilemma as now I don’t really need a loan. Some friends are telling me to put the money I have inherited into equities and go for the loan. What should I do?
—Swathi M.
Adhil Shetty, CEO and Founder, BankBazaar.com
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