A loan against property has been in existence since ages, yet people still feel reluctant to apply for it owing to the lack of knowledge and understanding. The Loan Against Property Interest Rates are quite low in comparison to other loans. Hence, in this article, we will talk about why loan against property is better than other equivalent options.
> CIBIL score: 750 and above! This is what you’ll find in the eligibility section of most personal loan proposals available in India. Yes! A person needs to have a high CIBIL score, higher than 750 to avail a personal loan from any bank and NBFC. Without it, they don’t even stand a chance! A loan against property is quite opposite in that respect. Anyone with a decent income, a fitting collateral, and a low debt-to-income ratio can apply for a loan against property irrespective of their CIBIL score.
> Longer Repayment Tenor: Most LAP schemes are available along with a long repayment period which can be as high as 20 years. On the contrary, the other unsecured alternatives are available for a very short tenor.
> Lower Interest Rates: Needless to say, a loan is taken against a property will be available at a relatively lower interest rate compared to any other unsecured alternatives like a personal loan.
> Higher Loan Amount: A personal loan application is highly prone to rejection if the applicant is asking for a very high amount. This is because a personal loan is unsecured in nature and the borrowing limit is always less compared to secured loan schemes like a mortgage loan.
If you are planning to apply for a loan against your property, don’t forget to compare the specifications before applying for a particular scheme.
Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health.
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