Are you someone who searches online for a loan product to get a significant amount of credit that is also affordable, has an uncomplicated application process, requires little documents, and disburses the loan amount quickly? You may not necessarily require the large ticket size loan to complete personal obligations like financing a child’s education, a family marriage, or expanding your current business operations. Instead, you may need it to address capital needs. When a loved one experiences an unplanned medical emergency that necessitates urgent access to a sizable sum of money for surgery and hospitalisation, the need for immediate financing can also develop.
To help you not get stuck with fulfilling your obligations or professional commitments due to lack of funds or capital, a loan product like Loan Against Property comes to your aid. A loan against property can be availed quickly by keeping your property (residential flat, shop, office, or plot) with the lender and availing a loan amount up to a percentage of the market value of the property that you wish to pledge with the lender. Keep in mind, the loan amount differs from lender to lender.
Here are the top 5 benefits of a Loan Against Property
Low Interest Rates: The most lucrative benefit is the low interest rates that are offered to borrowers as compared with the interest rates on Personal Loans. The interest rates can be further competitive if the borrower has a robust credit history for repayment of previous or existing loans. However, keep in mind, interest rates differ from lender-to-lender and therefore the borrower should study the interest rates of LAP products being offered by various lenders before applying for a LAP product.
Quick Approvals:
A Loan Against Property product is considered as a Secured Loan. Since the property is being pledged/mortgaged with the lender, the process of acquiring quick approvals on the loan application is much agile and easy.
Longer Tenure:
Borrowers enjoy the longer tenure that is extended to them by the lenders for repaying their loan amount. The tenure is generally 10-20 years and differ from lender-to-lender.
Borrower’s Profession:
Loan against property can be availed by both salaried as well as self-employed individuals, subject to certain documentation that needs to be submitted to the lender.
Fixed or Floating Rates of Interest:
Borrowers availing loan against property can decide whether they wish to opt for a fixed interest regime during the loan tenure or go with the flexible floating rate of interest, which are subject to changes during the loan tenure.
No Prepayment Charges:
Some lending institutions may extend the benefits to the borrowers towards no prepayment charges for closure of the loan amount. Again, this benefit differs from lender-to-lender.
Now that you know about the benefits of Loan Against Property and wish to apply for one, kindly do keep in mind about the documentation and eligibility criteria before applying for the loan.
Do not holdback your dreams or commitments and let your property come to your aid in achieving and honoring the promises of fulfilling life-goals you had envisaged for you and your loved ones.
