HOW IS LOAN AGAINST PROPERTY BENEFICIAL FOR YOU

Posted by loan adda on December 19th, 2018

Want to buy that branded car? Or planning to get a new home somewhere in goa? Or planning to expand your business into a more corporate atmosphere? So much to do, but one thing constantly stops you from going further in your life. It is the financial problems which you face in your daily life. These financial problems can be the most stressful thing which happens to you.  But, don’t freak out as we have an option for you, which the loan against property.

Haven’t thought of taking a loan against property or haven’t heard about it before or thinking that how could you execute it or maybe how will it be beneficial for you? Well, the answers for all your doubts will be answered. So, a loan against property is a secured type of loan, which involves collateral as a security purpose. Here, you will be providing your owned residential property or commercial property to the specific bank in which you’ll be applying, like a mortgage. These loans are quite easy to avail, as they required minimum documentation, and the interest rates which are provided, are quite lower than other loans. As easy as these loans are seen, but they come with certain guidelines which you need to make sure before applying like, the property which you are mortgaging should be owned by either you or family, another thing is that the property should be in good condition, and also it should be registered with the government.

Now, let's see how it can be beneficial for you.

• Firstly, these loans are easy to get from various banks and NBFCs. As these are secured loans, so bank feels safe to provide you with these kinds of loans as they get the benefit of having your property as collateral.
• Secondly, in this loan, you get the benefit of prepayments, which means that you can close your loan amount whenever you want without any extra charges. As in these kinds of loans, banks generally don’t ask for charges while closing loan against property.
• Thirdly, you get the benefit of having the access of lower EMIs. As the tenure for a loan against property is high, and the interest is low, you get the benefit of availing lower emi’s. This option is beneficial for those people who can't pay a high amount of Emi’s. But people who can pay a high amount of EMI monthly can opt for shorter tenure also.
• Fourthly, the longer the tenure the easy it gets for those who can't pay off a heavy amount of emi monthly.  The tenure for these loans can up to 10-15 years depending upon the lender.
  

Loan against property or Loan against plot is a loan, which will help you to fulfill all the plans, you wished for but couldn’t execute due to financial issues. Now, you can easily plan your dream vacation, or send your child to study abroad.