We all know that savings can never be sufficient for us when it comes to marriage, education, home renovation, and other activities that require a good amount. There are many loans available in the market and also many lenders are also available. So, there are two loans that are trending nowadays to fulfill your personal aspirations: personal loan and loan against property.
These two loans are totally different from each other. Let's discuss how:
Loan Against Property: It is a secured type of loan. In this loan, you will put a piece of land as collateral to the lender in return you will get a loan amount. You have to repay the loan amount to the lender with interest rate and after that, you can take a document of your property back.
Personal Loan: It is an unsecured type of loan. You can apply for the loan and then you have to repay it to the lender with interest rate. But The main issue with this loan is the rate of interest is very high as compared to loans against property.
Benefits of Loan Against Property:
- Loan Against Property Interest rate is low as compare to personal loan
- Various repayment option
- Long tenure for repayment, can be 20 years
- Documentation is simple
- Multipurpose loan
- Interest rate better than credit card
- Multipurpose loan
- Repayment tenure up to 7 years
- This loan can be available on all type of lenders
- If your credit score is not so good then also you can apply for this loan.
Conclusion:
According to the discussion, Loan Against Property has many benefits over the personal loans, and also it is a secured type of loan. Long tenure means less monthly installments. Now all up to you according to your needs.
Read More: Is Loan Against Property a Good Idea?
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