A loan against property is one of the best loan plans available because of the large amount it offers. If you take a LAP, you can use the loan amount for your current requirements as well as for future emergencies.
You can invest the loan amount in your business which will give it the boost it deserves. And if possible, you can set aside an amount from this loan as an emergency fund with an FD or a mutual fund scheme offering you high returns. This fund can be used to pay for higher education, marriages, medical expenses, and unforeseen expenditure. Click here to apply for LAP.
Here’s why you should use your Loan against property as an emergency fund:
Long Tenure: You can choose up to a tenure of 20 years when you take a loan against property. This gives you ample time to invest this money into a savings scheme and incur high returns. This investment will work as a back-up for you in times of financial emergencies.
Refinancing: Property prices are always on the rise. So, if in the future you require some more money, you can refinance your loan. Refinancing means taking our a second-mortgage or a top-up loan on your existing loan.
Low-Interest Rates: A LAP offers the lowest interest rates which means that you will not incur huge losses when you take this loan. Check the LAP interest rate.
If your emergency fund remains unused in due time, you can pay this money as a pre-payment of your loan against property.
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