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14 DECEMBER, 2021
Life is very uncertain. At one moment, you can have ample money to fulfil all your needs. But the next day, there could be a situation when you are struggling to meet your financial needs. And let’s be honest, your friends and family can only help you to an extent. Therefore, you must have your own means of arranging funds at the time of a financial crisis. Secured loans like loans against property are a viable source to finance your various needs. Read on to know more.
What Is a Loan Against Property?
A loan against property is a secured loan where you can borrow funds from a bank or financial institution by pledging your property. Your property remains with the lender until you repay the entire loan. You can mortgage your residential, industrial or commercial property to avail the loan.
Features of Loan Against Property
The best thing about a loan against property is that it can be used for multiple reasons. There is no end-use for this loan and you can use it for any purpose you want. You can use it for personal or professional needs. A loan against property can be utilised for the consolidation of debts or for expanding your business. You can also use it to finance your dream vacation or your children’s dream wedding. Moreover, you can also avail this loan to meet the expenses of any medical emergency.
Your loan amount is based on the market value of your mortgaged property and so, you can get approval for a higher loan amount. A large amount can help you fulfil your needs without digging into your savings. Therefore, it is a flexible means to achieve your big-ticket needs. With us, you can avail a loan amount ranging from Rs 10 lakhs to 5 crores.
A loan against property is a secured loan and thus, is a less risky option for the lenders. Since you mortgage your property, the loan process is quick, and you get the sanction faster. The lender checks your eligibility, verifies your property and sanctions the loan amount against it. Moreover, the application process is simpler, and disbursal is much quicker than other credit options.
Usually, other credit options like credit cards and personal loans have higher interest rates and shorter tenure. However, you can avail a loan against property for a maximum tenure of up to 15 years. A long tenure gives you ample time to repay the loan comfortably as per your financial comfort. Moreover, as it is secured, you can get competitive interest rates and lower EMIs.
A loan against property can help you fulfil your varied needs with easy instalments. However, you must borrow as per your financial profile. While you can get approval for a much higher amount, you must check your affordability and apply accordingly. It would be best to use a loan against property calculator before applying.
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