Just the word “loan” can strike fear and worries in the mind of all individuals and no one wants to start new things by being dependent on some entity that could be risky, There are many types of loans like housing loan, construction loan etc. but Loan against property is the most simple loan type, a borrower gets the amount of loan based on the market value of the house that he/she is offering for collateral. Now you can take this loan for various purposes it could be for paying your child’s college tuition or you want to expand your old business, and for any cases where you need to pay a huge sum that you can’t come up on your own.the following rates are about the loan against property India.
Here is a list of purposes for which you can apply for “loan against property”:
- When you are interested in expanding your business
- The wedding expenses of your son or daughter.
- For sending your son or daughter abroad for higher studies
- Or you can fund your dream vacation and take a hiatus.
- If you are in need of funding medical treatments
Here are some Advantages of “Loan against property” that you will have the chance of experiencing if you decide to select this loan type.again keep in mind that these advantages are of loan against property India.
- To start with, it actually is a lot cheaper than a personal loan, which is normally allotted at interest rates around the range of 12-25 %. Which generally concentrates on a daily or a monthly reducing balance method. The rate at which this loan type is issued is in the range of 12.50-15.75 %. The rates are lower basically because the borrower provides his/her property as security.
- it is much cheaper to select loan against property in comparison to a personal loan, not just because of the rates, but you have to make monthly payments which you can pay over the term of 1 to 15 years. They just have a few condition like the tenure has to be lower than the remaining age of the property.
- most of the criteria for LAP are similar to those for any home loan. You can decide the payments factors before getting the loan.
- You need to fulfil few eligibility requirements, the eligibility requirements of the Bank so that the customer could qualify for this product are quite similar to those of a normal home loan. It is either given as an overdraft facility, which basically means it is for 1 year and it can be renewed every year or just like a normal loan.
Deciding what of kind of loan to choose from can be pretty hard as there are so many types and factors that you have to consider, you can spend time in forming a plan using which you will be able to make down payments on time so you will never have to worry about your property being at risk as most of the time people choose to offer their property as collateral and in “Loan against property” property is the main factor and provides the needed security which lessens the amount that you have to pay for each installment.