Benefits of opting for Loan Against Property

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.

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.
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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.