Loan against property is a type of mortgage scheme which allows people to pledge any residential or commercial property as collateral and avail a loan against it. Due to the end usage flexibility, the debt product can be treated as a secured personal loan. The loan amount can be used for almost anything without even informing the lender about it. For instance, some of the most common uses of loan against property are:-
> Construction refinances/ Refinance on a self-financed property.
> Debt consolidation/ Mortgage Buyout.
> Business purposes For example, expansion, acquisition of assets etc.
> Travel/ Education/ Marriage/ Personal needs
Moving on to the second part of your question, you can avail a loan against property if you can qualify the terms and conditions set by the lender. The conditions would be available on the lender’s website.
The loan amount can also be used to manage different other personal reasons which, in other conditions, can’t be managed using other loans.
Some of the above-listed uses of loan amount also allow the loan taker to claim tax deduction under different Income Tax sections. The tax benefits would be available for the amount paid as interest.
Additional Read: Loan Against Property to Balance Your Finances
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