Loan against Property - Features and Benefits
A loan against property is similar to a home loan, where the property is mortgaged for a loan. It is a secured loan that can be used for any purpose. The chance of loan getting approved is higher since it is low risks for banks. The property backs the borrower’s commitment to repaying the loan. Interest rates on loan against property are lower than personal loans.
While a home equity loan is designed for buying a home, the choices for using a loan against property are broader.
Loan against property from several investors in the market benefits you to unlock the potential worth of your home or property within a short period to urge a loan for your immediate purpose.
When you pledge your property, the bank or investor takes less risk, which suggests you are more likely to get a good interest rate. However, other alternative factors like credit score, regular income, and job stability might also influence your loan approval chances and interest rate.
The features of Loan Against property are:
• This multipurpose loan helps you to fulfill your financial needs at engaging and attractive interest rates.
• SHDFC offers flexible loan tenures, right up to 15 - 20 years.
• Applying for a loan against property is easy and can be quickly approved.
• The interest rates are much lower compared to other personal & commercial loans.
• Integrated branch network & services make it easier for the borrower to get the loan easily.
There are several benefits of LAP, and in this article, we will introduce you the benefits.
Secured Loan: Secured loans are a great way of improving credit score. n. The property title must be pure, and you required to furnish some other proofs to get the loan.
Serves Various Needs: There do not seem to be several restrictions on the way to utilize the funds when it comes to loan against property. However, most people borrow against property in situations of huge funding requirement such as for purchasing a new house, travel plans, setting up a business, marriage etc.
Easy Loan Option: Loan against property is the cheaper loan compared to unsecured loans and thus, an effective way to meet your monetary demands during the times of financial need.
Flexible Loan Tenure: Loan duration is longer in this case. Thus loan against property is a good option, with the tenure extending to around 20 years, in case, the loan amount is high.
Loan Based on EMI: You get the benefit of paying the loan either through equated monthly installments or overdraft facility, whichever is suitable. It is the evaluation of the property along with your account history, which confirms the overdraft limit.
Pre Closure: Just like any other loans, you can also prepay the loan against the property to clear off the liability sooner than the term decided. But in case the loan was on fixed interest, there is a possibility that you have to pay a prepayment penalty.
Thus, you can apply for a loan against the property at Shubham housing finance Contact us and get abundant benefits. Share your thoughts in the comment sections below.
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