BENEFITS OF LOAN AGAINST PROPERTY IN COMPARISON OF PERSONAL LOANPosted by loan adda on December 27th, 2018 Loan against property is a solution for all your financial requirements. Be it to finance your child’s education, or be it a medical requirement, or even to finance your child’s wedding, in numerous requirements and one step solution. It is a secured loan in which you are required to mortgage your owned property either residential or commercial or industrial land to the lender as a form of collateral. Benefits of a Loan against Property compared to a Personal Loan 1. Lower Interest Rate: In comparison of Personal loans which are considered as the most expensive loans to take or apply as they are unsecured, and they do not have any collateral. Whereas, a loan against property is a secured form loan and the rate of interest over here are generally low. The interest rates on a loan against property can range from 12-16% while interest rates on personal loans can range from 15-22% or can even go higher. Interest rates can also vary from lender to lender depending upon credit score, your income and also your past financial stability.
3. LONGER TENURE- As the loan amount in loan against property is higher so for this you get the benefit of longer tenure which can go up to 15-18 years. As longer the tenure the lower is the EMI amount you’ll pay monthly. Whereas in the personal loan the maximum loan tenure can go is up to 4-5 years. If you have an outstanding cibil score there might be a chance in which you can avail more tenure, but that is in rare conditions. 4. LOWEST EMI OPTION- In loan against property, the benefit you get is of lower EMI, which you have to pay on a monthly basis. The longer the tenure the lowest is the EMI. Whereas, in personal loan, the tenure is not that much which states that the higher would be the EMI. Like it? Share it!More by this author |