There may happens a situation, when you are in dire need of money for some reason, and options like borrowing money all the way through friends or family members are always obtainable to you. There are some more options which can lift large sums like loan against property or more commonly known as LAP. It is a suitable and easy means to have access to the funds and meet the financial requirements with the help of the banks at lower rate of interest. You can make use of your property to have a right to use to the funds as offered by the banks. In general cases, the banks offer as much as 70% of the loan amount based on the estimate of the property being offered by you as collateral.
Benefits of Loan against Property more than other Loans
One must always keep the truth in mind when we talk about loan against property that this loan is a secured loan. Therefore the bank by no means hesitates in offering a good loan amount against the property being used as collateral.
Cheaper Loans Choice
While several loans are obtainable in the market like personal loans, the loan against property holds an enormous advantage when in contrast with such loans. The loans against property are the cheaper loans comparatively personal loan and thus, are an effective way to meet your needs and demands throughout the times of financial need. Another fact states so as to, only home loans are cheaper than the loan against property and therefore one can fairly simply appraise the helpful part allowing for the rates of interest.
Another advantage linked with the loan against property is the loan tenure, which is much longer in this case, while personal loans, have a short period ( a maximum of 5 years) for loan repayment, the loan against property is a good alternative, with the tenure extending to around 20 years, in case, the loan amount is high.
Since the loan tenure is of long duration, the EMIs are automatically going to be little. The EMIs are small and thus making it simple for the borrower to pay the loan amount and its interest with much easiness.
While the loan against property is a secured loan, claiming for this loan is fairly easy in contrast to the other loans, which is an essentially high effort to get empty. The only requirement for this loan is a clear title of property and all the essential proofs sustain it.
The options are broad when it comes to putting the property as security in case of a mortgage loan. An individual can set off either a residential property or a commercial one for the reason of a seeking loan. Even, one can claim the loan against the property with the piece of land or even through the property under construction, thus as long as a wide range of options for the people looking for the loan against property.
EMI Based Loan or an Overdraft Facility
Several banks offer a feature linked with the loan against property in the form of the paying up of loan amount either in the form of EMI Based loan or an overdraft facility, suiting your needs. The overdraft limit will be resolved by the estimation of the property and your account history.
Fulfill All Your Needs
While the loan against property can be used to assemble all the needs of your personal life, there is no limit attached to this loan. Well, apart from personal loans, one has to supply all details of the exact purpose of the loan. For example, in the case of an educational loan, you need to furnish all details of the educational, financial needs, marriage loans, car loans require the car to be bought etc. The amount as claimed beneath the loan against property can be used in all legal demands and needs of the person and one can use the money in the way, the person desire.
For example, one can employ the money in increasing the business or for vacation. One can support the medical treatment or for studies of kids or marriage of their kids or any other life event. Even, it can be used to close off other high cost loans, which are affecting your personal life or the way you live.
The loan against property can be used to get together all the demands and wants of an individual just like personal loans, and thus there is no link as such associated with the loan against property.
Another significant feature of loan against property states that if the value of the property rises during the tenure of the loan, the borrowers have the choice to get a top up on the existing loans. This feature can be very helpful to the person chiefly in case, if he/she is a business owner.
With the per closure options obtainable just like many other loan types, the person can prepay the loan amount and get free of the liability. Though, in a number of cases, like in fixed rate of interest cases, the person has to pay the prepayment penalty just like other loan types.
The decision to take on the specific loans totally depends on the choice of a person and the choice can depend on several other factors. While the loan against property is one of the best ways to raise funds in quick time, especially when the required loan amount is high. With almost no difficulty as long as you are able to repay the loan there are no hassle linked with the loan against property and calls out for the best option.