The phrase ‘life is a roller-coaster’ is quite true. No one can predict its ups & downs or its twists & turns, we’re just all in for the ride! And when life throws us a curve, we often tend to look to people around us for help. This is especially true in case of a financial crunch. When we need urgent funds, we look to family & friends for help. But there’s another way to ride out financial crunches, and it’s called a loan against property.
A loan against property is a quick & hassle-free way to get your hands on a large amount of money. If you’re in urgent need of funds then look no further than this efficient borrowing instrument. It offers you up to 60 to 70 percent of your home’s current value as the loan amount. Not only that, it also offers you the option to choose a long tenure of up to 15 years; allowing you the luxury of paying the loan at leisure. What’s more is that, in comparison to personal loans, the interest rate is also very less and will range between 11 to 16 percent. And if you need the funds urgently, don’t worry, the quick processing time of these kinds of loans is another plus point.
Wondering how this instrument can help you in times of needs? Read on, this article will look at four common occasions a loan against your home can help you out.
Most common occasion; new business or business expansion.
Running a business takes a lot of money and is no cake walk! Sometimes, as an entrepreneur, you might require urgent funds to build a new business or to take your existing business to new heights. In times like these, you will look for potential investors, who will have their own terms for lending you the money. Or you will have to go through that embarrassing process of asking family & friends. But why do all that when you can support yourself with a loan against property? You can get a substantial amount of money quickly and without much of a hassle. With a mortgageloan you can also get tax deductions if you can effectively prove that the loan was taken for business expansion.
Second most common scenario to take a loan against property; education:
Now you might be thinking why someone would take a loan against their home when they can go in for an education loan. But this is where the hassle-free application process of a loan against property comes in handy. As long as the home is in your name and you have proof of the ownership, you can easily get a loan without much of red-tape or formalities. What’s more is that the interest rate will be around the same but the tenure of a home loan is a little longer, allowing you to pay back the amount with ease.
Lastly, wedding expenses:
Weddings are always extravagant! And though they might be the most memorable occasion for the two people, they are also equally financially demanding. Thus to cover the cost of a wedding, most people turn to personal loans. But in comparison to mortgage loans, personal loans seem like financial traps! With a loan against your home, not only do you get higher loan amounts, but the processing time is also less, the interest rate is also lower and the pay-back tenures are also longer!
These were 3 of most common instances you might require urgent funds, which also make them 3 instances a loan against property can help you out remendously! If you need to know more about these loans, speak to a loan advisor today!