Personal loans are much more convenient and conducive since they are easily available, and the lender offers end-usage flexibility with the sanctioned loan amount. That said, the loan against property interest rates is higher compared to secured loans, and so the EMIs are, for the most obvious reasons, higher. For some it might be easy to manage the EMI even if it is expensive, others might just succumb to the pressure.
That’s when loan against property becomes a convenient options; offering the loan at a lower interest rate which result in lower EMIs. The other factor which promotes loan against property as a solution to lower down the EMI burden is the wide repayment time. Since the loan is secured by a collateral; the associated risk factor is on the lower side for the lender and hence they offer a wider repayment tenor. A wider repayment tenor allows the lender to spread the principal and interest component for a longer number of years which results in lower EMI for borrowers.
Apart from that, below are a few reasons why loan against property helps reduce the burden: -
> Loans are secured by loan insurance. Thus, if anything happens to you, your family won’t be burdened with EMI payment.
> You can remortgage the same property with the same lender for a second loan at a lower interest rate and use that for debt consolidation.
> Lastly, here too the loan amount comes with end-usage flexibility which allows the borrower to use it for anything they want to.
Additional Read: How a Loan Against Property gives you an easier EMI Choice
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.
No comments:
Post a Comment