Simply put, a loan against property is what it actually connotes -- a loan given or disbursed against the mortgage of property. This is unlike a personal loan, which is disbursed to an individual; no questions asked. The loan is given as a certain percentage of the property's market value (usually around 40 per cent-60 per cent). But the threshold amount too is generally defined by most lending institutions like say, Rs 200,000. This multi-purpose loan puts funds at your disposal to use as you wish. It unlocks the hidden value in the property you own
Features at Glance
- Loans from Rs2 Lakh onwards depending on your needs
- Borrow up to 70% of market value of the property
- Flexibility to choose between an EMI based loan or an overdraft
- High tenure loans for ease of repayment.
- Attractive interest rates.
- Simple and speedy processing.
- Loan for salaried & self-employed individuals
Advantages of taking a Loan Against Property
- Cheaper than Personal Loans: It works out to be much cheaper than a personal loan, which is usually issued at interest rates in the region of 16 per cent-21 per cent.
- Longer Loan Tenure: The tenure for a Loan Against Property is usually longer than that for a personal loan. Generally, LAP is given for a maximum tenure of 10 years.
- Lower EMI: Since the rate of interest is lower, many times, LAP Equated Monthly Installments (EMI) turn out to be cheaper than those under personal loans.
- Simple documentation and Fast Approvals: LAP being a secured Loan has comparatively faster approvals and minimal documentation.
Loan Against Property can be taken for following purposes:
- Expanding your business
- Get your child married
- Send your child for higher studies
- Fund your dream vacation
- Fund Medical Treatments
In nutshell, Loan Against Property is a secured multi-purpose loan with larger tenor and lesser rate of interest
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