Benefit Your Pocket with LAP
Addressing a big financial crunch in life is a tough game all the way. Financial assistance from the external sources becomes inevitable in these cases. Smaller financial crunch can be easily bridged with the unsecured personal loan offered by the bank, but the banks have cap on the amount that can be sanctioned through personal loan. When you want to chase bigger financial assistance, loan against property turns to be your best bet. You will be able to avail a secured loan by pledging your property and the amount sanctioned through the loan is subject to market value of the property which is always higher. Apart from that, one can enjoy many benefits by availing these loans on property.
Used for Different Purpose
The best part about this Mortgage loan is that the banks have no obligation for the purpose which the loans can be used for. You can use the loan to aid, educational expenses, marriage expenses, consolidation of debt and business expansion too. This loan comes handy in addressing various big financial needs of life.
As evident by the name, these loans are secured against a property so, the interest rates on these loans is very low when compared to any other loans offered by the bank. It enables you to repay the loan amount easily without facing any hurdles. As mortgage loans are secured, you may end up in losing the property in case you default the loan so, the fear of losing the property will teach you to manage your finances effectively and repay the loan completely.
Long Repayment Tenure
These loans come with long repayment tenure next to home loans. The tenure of these loans on property is as maximum as 15 years. The borrower will have a good time to manage their finances and repay the loan effectively. Though the property is pledged to obtain a big loan, you will still hold the possession of the property and raise income from it so, repayment of the loan with lower interest rate is never a hassle.
The lender normally sanctions 50%-60% of the market value of the property towards the loan. The value of the pledged property may rise over a period of time. In such cases, the lender can avail this opportunity to refinance the loan against property. This is the best option for the business owner who constantly expands their business.
Is Loan Against Property a good Idea in India?
Most of the borrower is sacred to choose this option of Property mortgage loan in spite of having many advantages. Fear of losing the property in case of loan default might be the major reason. None other than Property mortgage loan can stand as best option when you are looking to avail big financial help with low-interest rate and quick processing. These loans should be avoided only when you doubt about your repayment capacity.