Loan against property is the trending loan nowadays. It's a secure type of loan which means that you have to submit documents or your property to the lender as collateral and after that, the lender will avail you the loan. The property can be residential or it can be commercial.
Advantages of loan against property:
- The higher amount of loan will become affordable
- Quick and easy process
- Low-interest rate
- Long repayment tenure
- Low prepayment charges
- Require very few documentation
The factor that you have to keep in mind while availing loan against property:
- The loan amount: The loan amount will depend on the property which you will submit as collateral to the lender. The amount given to the loan is the 70% value of the property.
- Interest Rate: The loan against property interest rate is low as compared to the other loan around 10%-12%. It is a secured loan that is backed by a mortgage.
- No restriction on usage: You can use the amount of the loan anywhere you want it can be on education, marriage, etc. It is like a personal loan. You can renovate your house with the amount.
- Tenure: No tension or repayment as the loan has long tenure for repayment that is 2-30 years. Long tenure means small EMIs which is easy to pay without disturbing the monthly budget.
Read More: 6 Myths about Loan Against Property
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