A personal loan is an unconditional loan where no need to pledging any property and the loan against property is a conditional loan where your property value decides your loan amount.
Loan against property vs personal loan:
Loan Amount: Due to its secured nature, the loan amount of loan against property is usually higher close to 70% of the property value. and the personal loan amount usually low close to 40%-50% it is low compare to LAP.
Interest Rate: Loan against property interest rate is 11%-16% it depends on the landers. The personal loan interest rate is up to 24% offered by some financial institutes.
Loan Tenure: The loan tenure goes up to 15 years it depends on the secured nature.in the personal loan the loan tenure up to 5 years.
Loan Processing: The process is longer the bank and NBFC take time to evaluate the property the approved the loan. The process is the time taken to compare to personal loans.In the personal loan, the lender requires checking the credit score and the income of the borrower so less time required to approve the loan.
Credit score: LAP required less credit score but the personal loan required a higher credit score if in any case, your credit score is less the landers are not interested in sanction the loan amount.
These are some points to keep in mind before going to avail of the loan against property or personal loan. You need to know the pros and cons of both.
Loan against property vs personal loan:
Loan Amount: Due to its secured nature, the loan amount of loan against property is usually higher close to 70% of the property value. and the personal loan amount usually low close to 40%-50% it is low compare to LAP.
Interest Rate: Loan against property interest rate is 11%-16% it depends on the landers. The personal loan interest rate is up to 24% offered by some financial institutes.
Loan Tenure: The loan tenure goes up to 15 years it depends on the secured nature.in the personal loan the loan tenure up to 5 years.
Loan Processing: The process is longer the bank and NBFC take time to evaluate the property the approved the loan. The process is the time taken to compare to personal loans.In the personal loan, the lender requires checking the credit score and the income of the borrower so less time required to approve the loan.
Credit score: LAP required less credit score but the personal loan required a higher credit score if in any case, your credit score is less the landers are not interested in sanction the loan amount.
These are some points to keep in mind before going to avail of the loan against property or personal loan. You need to know the pros and cons of both.
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