Life doesn’t always go as planned. At some point, we all need access to sudden cash. Now, breaking your savings is one option but isn’t an intelligent move unless you have no other choice. This is why people prefer taking loans and that too secured loans. A loan against property is considered to be an easy and efficient way to take care of your financial requirements. As compared to unsecured loans, secured loans offer much better benefits and perks. You can apply for loa here: https://www.fullertonindia.com/loan-against-property.aspx
So, whether you are planning to expand your business or want to have a lavish wedding, give your children the best education possible, or take care of your loved one’s medical expenses, taking up a secured loan like LAP is recommended.
There are several reasons why you should go for a secured property loan, and we are going to discuss the most crucial benefits in detail.
Reasons Why Secured Property Loan is the Best Option
#1 A Stress-Free Application
Given that the property you are mortgaging belongs to you and that you are an Indian citizen, the eligibility criteria for the property loan is fairly simple. Nevertheless, the borrower needs to be employed or self-employed and should fall in the age group of 25 to 70 years. In short, the lender would want to ensure that you have a regular source of income so that you can pay the monthly EMIs. The documents you need to submit may include your address proof, Aadhaar Card, PAN card, bank statements, IT returns, and latest salary receipt or income proof.
#2 Affordable and High-Value
One of the biggest perks of a loan against property is that it is highly affordable. The loan against property interest rate is quite nominal. You can choose your preferred tenure. The longer the tenure, the lower will be the interest rate. Most importantly, since you are mortgaging your property, the loan amount you get is significantly high. In the majority of the cases, the lender will sanction 70%-75% of the total value of your property as the loan amount. Therefore, you can get a loan amount as maximum as ₹1 crore. And in some cases, the loan amount can jump as high as ₹3.5 crores. All in all, a secured property loan is the perfect option if you want your hands on a substantial amount at cheaper rates.
#3 Use the Loan Amount as per Your Convenience
The primary reason why people prefer secured LAP is that the loan puts no restrictions on what you use it for. Whether you are planning a family vacation abroad or want to send your children overseas for higher education, fund your child’s marriage, start a business or expand an existing business, you can use this loan to fulfill your dreams. No one will come to you asking where you are spending all the money.
#4 Refinance an Existing Loan
If you are already in debt and think that the interest rate and tenure of that loan have derailed all your plans, then taking a LAP to finance your loan is a good idea. Since the interest rate on LAP is quite low, you can take advantage of this and enjoy a high-value top-up with easy payment options. Once you have paid off the loan, you can use the remaining funds to take care of your additional expenses.
#5 Pay the Loan at your Convenience
Last but not least, you can choose a tenure that suits your repaying capacity. These loans have long-term tenures, which means lower EMIs. You can choose a tenure between 2 and 20 years, and if you want to prepay the loan before the tenure ends, you can do that too at minimal charges.
A secured property loan is one of the easiest and the most functional loans you can get in India. You will be putting your property on a mortgage. So the loan amount you get will be substantial.