Are you a person who is doing an online search for a loan product for availing a large sum of credit which is also cost-effective, having an easy application process, requires minimum documentation and is quick in disbursal of the loan amount? Your reasons for availing the large ticket size loan may not necessary be for buying a home/plot, but to address the capital needs to fulfill personal obligations such as child education, marriage in the family or to expand your current business operations. At times, the need for immediate credit also arises towards an unexpected medical emergency that requires quick and large sum of money for surgery and hospitalization of a loved one.
To help you not get stuck with fulfilling your obligations or professional commitments due to lack of funds or capital, a loan product like Loan Against Property comes to your aid. A loan against property can be availed quickly by keeping your property (residential flat, shop, office, or plot) with the lender and availing a loan amount up to a percentage of the market value of the property that you wish to pledge with the lender. Keep in mind, the loan amount differs from lender to lender.
Here are the top 5 benefits of a Loan Against Property
- Low Interest Rates: The most
lucrative benefit is the low interest rates that are offered to
borrowers as compared with the interest rates on
Personal Loans. The interest rates can be further competitive
if the borrower has a robust credit history for repayment of
previous or existing loans. However, keep in mind, interest rates
differ from lender-to-lender and therefore the borrower should study
the interest rates of LAP products being offered by various lenders
before applying for a LAP product.
-
Quick Approvals: A Loan Against Property product
is considered as a Secured Loan. Since the property is being
pledged/mortgaged with the lender, the process of acquiring quick
approvals on the loan application is much agile and easy.
- Longer Tenure: Borrowers enjoy the
longer tenure that is extended to them by the lenders for
repaying their loan amount. The tenure is generally 10-20 years
and differ from lender-to-lender.
-
Borrower’s Profession: Loan against property can
be availed by both salaried as well as self-employed
individuals, subject to certain documentation that needs to be
submitted to the lender.
- Fixed or
Floating Rates of Interest: Borrowers availing loan
against property can decide whether they wish to opt for a fixed
interest regime during the loan tenure or go with the flexible
floating rate of interest, which are subject to changes during
the loan tenure.
- No Prepayment Charges: Some lending institutions may extend the benefits to the borrowers towards no prepayment charges for closure of the loan amount. Again, this benefit differs from lender-to-lender.
Now that you know about the benefits of Loan Against Property and wish to apply for one, kindly do keep in mind about the documentation and eligibility criteria before applying for the loan.
Do not holdback your dreams or commitments and let your property come to your aid in achieving and honoring the promises of fulfilling life-goals you had envisaged for you and your loved ones.
