this type of loan, including the simplicity and reliability. Loan against property is a great option if you need some money for something important but don’t want to wait on saving up or get into debt with credit cards or other loans. The process is pretty simple and straightforward, so it’s worth considering as an option for getting what you need in a pinch! This article will discuss the different ways that you can benefit from taking out a loan against your property.
1. Easiest Way to Avail A Loan:
Taking a loan against property, as the name suggests, involves getting a loan obtained for any purpose and with the property being used as collateral to secure the same. The entire procedure is relatively easy because it offers easy terms and simple documentation to satisfy statutory requirements such as income proof, residence proof and more. If you have a property to your name you can easily pledge it as collateral to get the funds you need for any purpose. The loans are restriction-free and can be availed without any hassle.
2. Avail a large amount:
A loan against property amount may go up to 70-80% of your property’s value. If the value of your property is high, you may be eligible for a high amount of loan at a low interest rate. However, it is important to note that the amount of loan you are eligible for depends on the eligibility criteria set by the lender. If you meet the requirements perfectly, you will be eligible for a higher amount. If you eligibility falls, the maximum amount that you will be allowed as a loan will also fall. Use a loan against property calculator to understand your eligibility.
3. No restriction on the use of funds:
You can use your loan amount for any purpose, whether it is for education, home renovation or pleasure trip abroad. It does not matter what you do with your money as long as you pay your dues in time. However, it is important that these funds are only utilised in a legal activity. The lender will not ask for the reasons behind taking a loan to approve your loan. As long as you meet the eligibility conditions perfectly, you’re good to go.
4. Enjoy a low interest rate:
Property loans usually have a lower interest rate compared to availing unsecured personal loans. Borrowers of loan against property have a higher chance of repaying and thus, the lenders incur less risk upon lending funds. The secured nature of the loan lowers the interest rates so that you can repay the loan in easy and comfortable instalments. However, in case there are any delays or defaults in payments, there is always an option open to the lender of taking away the collateral i.e., the mortgaged property and selling it.
5. Choose a longer tenure:
You have the choice of opting for a longer tenure, say 10 or 15 years to repay the loan against property. This will help you to manage your finances and also get a lower monthly repayment amount as compared to an unsecured loan. The interest rates are usually lesser too in case of a long term loan than what it would be in case of short term loans, thus making it easy for you to repay the debt.
As you can see, there are many benefits to taking a loan against your property. The most obvious benefit is that it allows you the freedom of accessing cash at any time. You also get access to all-purpose financing which will allow you options to spend the funds as per your requirements, no questions asked. Requesting a home equity line of credit that is secured by your own home can help you manage cash flow more easily and provide funds when needed without having to sell or take out an expensive personal loan. Choose a home renovation loan today!