What to Choose Between Loan Against Property and Personal Loan

First, take a brief view of both types of loan that is personal loan and loan against property.

Personal loan: It is a type of unsecured loan. This loan will give you a loan amount on a fixed interest rate and you have to pay the EMIs of the loan back with monthly interest.
The repayment tenure is approx two to seven years are given by the bank.

Loan against property: It is a secure type of loan. In this type of loan, you submit your land or any residential property to the lender as collateral of the loan. The interest rate is comparatively low from personal loans. The repayment tenure is longer than the repayment tenure of personal loans.

Benefits of personal loan: It is a multipurpose loan. You can use this loan amount anywhere you want.
The interest rate of personal loans is somehow better than the credit card interest rate.
The interest rate will be low if you have a good credit score or history.

Those who have bad credit score history also can avail personal low but the interest rate will be high.

Benefits of Loan Against Property: The rate of the loan offered by the lender is low for this loan because it is a secured loan.
The repayment tenure is quite long for up to 20 years.
The documentation is very simple.
The approval process is fast.
You will get the loan amount of 60% of the property value that you have been used as collateral.


Loan against property has more plus points as compared to personal loans. Check loan against a property interest rate.

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Planning to avail loan on your home you should know these 5 critical things