There are various types of loans available in the market for various uses like personal loans, home loans, etc. But a loan against property is the best option for various uses like marriage, education, and more. There are few which we have to keep in mind before taking a loan against property.
The loan amount and disbursement: The loan amount depends upon the property value which is used as collateral to the lender. You will get 90% of the value of the property. As we all know that loan against property is a secure type of loan, so the loan disbursement process is very easy and hassle-free. The only process is the valuation of the property after that they proceed with the sanction process. Before taking the loan check the loan against property eligibility.
Repayment Tenure: The repayment tenure in loan against property is long because it is a secure type of loan. Many of the lenders offer tenure for repayment of loan up to 20 years and many give up to 15 years. The best part of long tenure is the individual can choose EMIs according to their monthly budget. However, early repayments are subject to prepayment charges.
Interest Rate: The interest rate is low as compared to personal loans. You can calculate interest rates online with the Interest rate calculator. For longer tenure interest rate is higher and for short tenure interest rate is low.
There is no restriction on using money. You can use it where you want.
Read More: Which Loan Is Best for home Renovation
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