Bongyan Finance Limited Introduction to a loan against property
A loan against property is a convenient method of gathering a large sum of money to manage any big-ticket expense. A LAP is a secured loan where the borrower can pledge their property to a lender as collateral to secure a large sum of funding at economical interest rates because the loan is secured and the tenor periods range between 20–25 years, making it affordable to repay these loans. This type of loan is beneficial for borrowers, but it does come with the added risk of losing your property only if you constantly default on your payments and are unable to repay your loan on time.
Unlike other forms of loans, such as a home loan, where the funds you receive are restricted and can only be used for the purpose of purchasing a property. This is not the case for a loan against property because the funds do not have any end-use restrictions and the borrower may use them to tackle any expense they may have, such as business expansion, property renovation, vacation abroad, fees for higher education, or even debt consolidation.
The loan security, collateral or guarantee depends on many factors such as the requested loan amount, loan term or duration, project type, project location etc. But generally speaking, the classic security for a loan is property or assets for companies applying within Hong Kong and China. We will perform our own independent valuations of the collateral you’re offering.For overseas applicants we do not require properties or assets but we have a wide range of things that can be used as loan collateral.These include Bank Guarantee (BG), StandBy Letter of Credit (SBLC), Insurance Wraps, Surety Bonds etc. Depending on what documents you submit to us, but after you submit your loan documents we will review them and tell you what security or collateral that will be used and we will be able to provide you with all the loan terms and conditions
How to Apply please clink here to apply
- KYC documents that serve as ID proof, such as Aadhaar cards, Pan cards, passports, and ration cards
- Income-proof documents such as salary slips for the past 3 months and bank statements for the past 6 months
- Proof of address, such as an electricity bill, Aadhaar card, or property tax receipt
- Documents pertaining to the mortgaged property
- Application form completed, along with any other documents requested by the lender.
The loan security, collateral or guarantee depends on many factors such as the requested loan amount, loan term or duration, project type, project location etc. But generally speaking, the classic security for a loan is property or assets for companies applying within Hong Kong and China. We will perform our own independent valuations of the collateral you’re offering.For overseas applicants we do not require properties or assets but we have a wide range of things that can be used as loan collateral.These include Bank Guarantee (BG), StandBy Letter of Credit (SBLC), Insurance Wraps, Surety Bonds etc. Depending on what documents you submit to us, but after you submit your loan documents we will review them and tell you what security or collateral that will be used and we will be able to provide you with all the loan terms and conditions
How to Apply please clink here to apply
- Documentation:
At the time of applying for a loan against property, borrowers will have to submit the required documents to verify the borrower’s background and debt capacity. If you have all the required documents arranged and kept in order, then you can avoid the hassle of resubmitting these documents. It is important that you submit all authentic documents because submitting any fraudulent documents will lead to an immediate rejection of your loan.
Here is a list of documents required:
- KYC documents that serve as ID proof, such as Aadhaar cards, Pan cards, passports, and ration cards
- Income-proof documents such as salary slips for the past 3 months and bank statements for the past 6 months
- Proof of address, such as an electricity bill, Aadhaar card, or property tax receipt
- Documents pertaining to the mortgaged property
- Application form completed, along with any other documents requested by the lender.
The loan security, collateral or guarantee depends on many factors such as the requested loan amount, loan term or duration, project type, project location etc. But generally speaking, the classic security for a loan is property or assets for companies applying within Hong Kong and China. We will perform our own independent valuations of the collateral you’re offering.For overseas applicants we do not require properties or assets but we have a wide range of things that can be used as loan collateral.These include Bank Guarantee (BG), StandBy Letter of Credit (SBLC), Insurance Wraps, Surety Bonds etc. Depending on what documents you submit to us, but after you submit your loan documents we will review them and tell you what security or collateral that will be used and we will be able to provide you with all the loan terms and conditions
How to Apply please clink here to apply
The interest rates are lower in comparison to a personal loan because the loan is secured against the collateral, and banks are less hesitant to offer competitive interest rates because their risk factor is much lower when compared to an unsecured loan. The rate of interest for a loan secured by property ranges 3%
The most beneficial aspect of a loan against property is that the borrower can continue to use the property throughout the duration of the loan, and once the loan has been repaid in full, the lender will transfer the property back to the owner. You can get your loan against property approved quickly if you follow the points below.
- Documentation:
At the time of applying for a loan against property, borrowers will have to submit the required documents to verify the borrower’s background and debt capacity. If you have all the required documents arranged and kept in order, then you can avoid the hassle of resubmitting these documents. It is important that you submit all authentic documents because submitting any fraudulent documents will lead to an immediate rejection of your loan.
Here is a list of documents required:
- KYC documents that serve as ID proof, such as Aadhaar cards, Pan cards, passports, and ration cards
- Income-proof documents such as salary slips for the past 3 months and bank statements for the past 6 months
- Proof of address, such as an electricity bill, Aadhaar card, or property tax receipt
- Documents pertaining to the mortgaged property
- Application form completed, along with any other documents requested by the lender.
The loan security, collateral or guarantee depends on many factors such as the requested loan amount, loan term or duration, project type, project location etc. But generally speaking, the classic security for a loan is property or assets for companies applying within Hong Kong and China. We will perform our own independent valuations of the collateral you’re offering.For overseas applicants we do not require properties or assets but we have a wide range of things that can be used as loan collateral.These include Bank Guarantee (BG), StandBy Letter of Credit (SBLC), Insurance Wraps, Surety Bonds etc. Depending on what documents you submit to us, but after you submit your loan documents we will review them and tell you what security or collateral that will be used and we will be able to provide you with all the loan terms and conditions
How to Apply please clink here to apply