Loan Against Property: Things You Must Know

Out of all the new entries in the financial sector, a loan against collateral has emerged as a promising solution. There two possible reasons that can be attributed to the immense popularity the product has gained within a short span of time are:

• End Usage Flexibility: The borrower gets end-usage flexibility on the amount borrowed, through a Loan Against Property Interest Rates. This means the borrower can use the money for almost anything without informing the lender. Having said that, there are certain ‘ways of using money’ which are prohibited as per the loan agreement in almost every credit scheme - speculative investment etc. You have to confirm the same from your lender.
• Lower Interest Rate: Compared to the other loan instrument which is accessible in the given situation i.e personal loan, a loan against property comes with a relatively lower interest rate.

This isn’t it! There are a few more benefits associated with a loan against property which makes it a clear-cut top choice for potential loan applicants.

1. Can Borrow A Higher Amount: The amount depends on the market value of the submitted collateral, thus, you always have the option to borrow a higher amount by using a property of higher value.
2. Higher Repayment Tenor: A Mortgage Loan Tenure is available with a higher repayment tenor to ensure the borrower can pay it easily.

Added facilities: Not all but some lenders offer extra added facilities to make the credit scheme more attractive and convenient for their customers. Facilities like online application and account management allow the potential customer to apply and manage their debt without stepping out of their house for even once.   

In the end, for all individuals planning to take a loan against a property to meet their immediate cash needs, it is advisable to do a comprehensive research and choose a fitting financing solution for yourself.  

Additional Read: 3 Essential Benefits of a Loan Against Property You Must Know