advantages of loan against property

Advantages of Loan Against Property

March 17, 2022 • 13021 views

A Loan Against Property is a versatile option for individuals and businesses with access to substantial funds by leveraging their property. A Loan Against Property (LAP) is a secured loan granted when you offer your existing residential or commercial property as collateral. From urgent financial needs for personal use to expanding business, Loan Against Property offers various benefits to make it an ideal choice for many. Let’s know the benefits and advantages of Loan Against Property.

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Top 5 Advantages of a Loan Against Property

The top 5 advantages of a personal Loan Against Property can benefit you:

1. Lower Interest Rates

Opting for a Loan Against Property has several advantages, one of which is the lower interest rates compared to other forms of loans. Since this is a secured loan, lenders offer lower interest rates as the risk involved is minimal. This translates to lower EMIs, and reduced interests, making it a flexible financing option for the borrower.

2. Retained Ownership of the Property

Another advantage of Loan Against Property is that you can continue to use the property even after it has been mortgaged. This means that the ownership of your property remains unchanged. You can still occupy or rent out the property while pledging it as collateral for the loan. 

3. Flexible Loan Repayment Tenure

When you apply for a Loan Against Personal Property, you enjoy a flexible repayment tenure of up to 180 months. This extended tenure helps you repay a large amount conveniently by opting for tailored monthly instalments. With the combination of a long repayment tenure and lower interest rates, this financing option becomes an affordable one for you.

Also Read: Do’s and Don'ts of Applying for a Loan Against Property

4. Higher Loan Amount

Whether you are borrowing money for personal or professional purposes, a loan secured by property can help you budget your expenses. Your lender will sanction you an amount ranging between 70 and 75% of the current market value of your property.  Additionally, when you opt for a Loan Against Property from leading financing institutions, you can access a high sanction amount of up to Rs. 5 Crore, helping you cover your needs.

5. Convenient Loan Processing

As Loan Against Property is a secured loan, lenders are more willing to provide you the loan. Minimal documentation is required as you keep the property as collateral. This makes your loan processing faster, saving you time. 

Uses of a Loan Against Property

With a Loan Against Property, you can cover any big-ticket expenses. These include:

  • Business Expansion
  • High-interest debt consolidation
  • Child’s education
  • Medical Emergencies
  • Vacation
  • Funding personal events

How to Apply for a Loan Against Property Online?

The application process for a Loan Against Property is simple and can be completed in under 5 minutes. Follow the steps below for a seamless application:

Step 1: Click on the ‘Apply Now’ button and you will be taken to the application form.

Step 2: Enter details all the required details.

Step 3: Cross-check the provided information to avoid any errors, upload the required documents and submit the application form.

Also Read: Minimum CIBIL Score Required for Loan Against Property

To Conclude

From its high sanction amount to flexible repayment tenure and lower interest rates, a Loan Against Property is an affordable financing option if you are seeking financial flexibility. Whether it’s personal aspiration or business goals, Loan Against Property allows you to leverage your property for urgent financial needs. Poonawalla Fincorp offers instant disbursal with minimal documentation for Loan Against Property.

FAQs

  • When should I take a Loan Against Property?

This loan type can be taken anytime you need to cover an unplanned big-ticket expense.

  • Who is eligible for a Loan Against Property?

Loan Against Personal Property is offered to salaried individuals, companies or firms, and self-employed professionals.

  • Are there any hidden costs of availing a Loan Against Property?

No. When you avail this credit line from credible financing providers, there are no hidden costs on this secured loan.

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan Against Property disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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