In times of financial difficulties, people tend to look for different options that can help them, such as selling their assets or borrowing money at high-interest rates. While borrowing money seems acceptable, having to sell assets could be heart-wrenching. At that crucial situation to opt for a property loan is a good idea. The borrower can able to take a loan on its own property. Most of the people choose this loan comparison to other loans.
Although we know that taking a loan against property can be a feasible option but there are conditions too. There are several benefits of choosing LAP instead of the other available options. You can find more about these as you read on.
10 Advantages of Loan Against Property to Raise Funds:
- Use It for Any Purpose
Often, the loans are designed for a specific use, such as education, property purchase, home improvement, etc. There are loans such as personal loans, which can be used for any purpose, and you need not furnish documents to prove the need for a loan. Loan against property is also one such loan.
- Enjoy Low-Interest Rates
While personal loans also may be used for any purpose, the interest rates make it an expensive option. When you consider LAP, in comparison, you can get the loan at much lower interest rates.
- Available Against Various Types of Properties
You can take a loan against various types of properties provided they are owned by you. It could be a home that you live in or maybe one that is rented out to a tenant. You can also take a loan against a commercial property. The loan does not require you to vacate the premises.
- Get Easy Approvals
It is easy to get approval for a loan against your property. All you need is to ensure that the property is clear of any dues and mortgages. The processing and disbursal of the loan are quick once you meet the loan against property eligibility criteria.
- Choose Your Amount
Your property is evaluated, and you can get approval of a loan up to 70% of the same. But you do not have to take the entire amount you are eligible for. You can opt for a lesser amount and pay interest only for that.
- Take Your Time to Repay the Loan
If you take a personal loan, you are bound to repay it within 5 years. In the case of LAP, you can choose a tenure of up to 15 years. This gives you more time to plan out your finances and repay the loan without any additional stress.
- Pay Up Early If You Wish
In most cases, LAP has the provision of pre-closure of the loan without any penalty, which may not be the case if you have chosen a fixed-rate loan. If and when you get some surplus money, you can choose to close the loan and collect the property papers from the lender.
- Avail Top-Ups
If you have an existing LAP and have additional requirements, you can always top up the loan against the same property with minimal paperwork.
- Enjoy Stress-Free Loan
Loan against property keeps you free from any extra stress as it offers you the option of paying lower interest rates as well as a longer tenure. Both these factors together work out to make your EMIs small and affordable.
- Make the Most of Your Property
When you take a loan against your property, you enjoy the maximum benefits that you can get from the same. The best part of this loan is that you can use the money and the ownership of your property simultaneously, unlike other secured loans. You can continue to live in your house while you pay the EMIs for the loan. One can use the loan against property EMI calculator to calculate the EMI amount to pay per month or year for convenience.
If you do need any funds urgently and you have a property that you can mortgage, it would be a better option than taking a personal loan or any other form of secured loan. In any case, it is important to make scheduled repayments to avoid losing your property altogether. Read This Article till the end i hope it will help you.