A loan against property is one of the easiest loans to acquire owing to the easy eligibility condition set by lenders. The debt product works on a very simple procedure: you keep your property as collateral, and a lender that you choose, offers you money which is equal to 60% to 70% of the property’s market value.
What are the expenses you can manage using a loan against property?
> Loan against property comes with end-usage flexibility which allows
> Funding for wedding expenses
> For establishing a business
> For business expansion
> For sending your children for higher education
> For urgent medical emergencies
> For all other personal needs
Since you know how to use it, applying and availing a loan against property won’t be such a difficult task. However, you must plan your loan very accordingly and make sure the repayment tenor is in accordance with your repayment capabilities. Choosing a shorter repayment tenor has a different kind of impact on your CIBIL score, and the same goes with choosing a long repayment tenor.
Choosing a short repayment tenor:
If you go ahead and select a shorter tenor for repaying the LAP account, you will need to pay up a large amount as the EMI. Hence, paying up a large amount may affect your monthly budget and other goals in life. Besides, if you miss your EMI in any case, it will take a toll on your CIBIL score. That said, choosing a short repayment tenor has its own perks since it reduces the payable interest.
Additional Read: Can a Small Tenor for a Loan Against Property boost CIBIL Score
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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