Advantages of applying for a loan against property

1. Advantages of applying for a loan against property The requirement of funds can arise for your personal or business needs anytime and in such situations, loans are the perfect solutions. While personal loans are available for funding your personal financial requirements, ​ loans against property interest rates ​​is a better alternative for personal or business related purposes. These loans provide various advantages which make these loans a better option. Do you know what the advantages of a loan against property are? Let’s find out – ● Affordable A loan against property is a secured loan. The property is mortgaged based on whose value you can avail a loan. Being a secured loan, the interest rate is low. As the interest rates are low, a loan against property is quite affordable. ● Multiple uses A loan against property is like a personal loan. You can use the loan for any of your personal or business related requirements. Lenders do not restrict the usage of the loan and the loan can be used for any and all types of financial obligations. ● Higher quantum of loan available A loan against property is granted against the value of property. Since the value of property is high, the available loan amount is also high. You can take loans up toany limit depending on the value of the property mortgaged. Thus, loan against property offers you high amount of loans which is not easily available in other loan options. ● Higher tenure The term of repayment is also high. You can repay the loan within 10 to15 years depending on the lender’s lending practices. Since the repayment tenure is longer, the EMIs become more affordable. ● Low or no prepayment charges Loan against property have nil or low charges on prepaymentsfor floating rates. If you have surplus funds and want to lower your loan burden or close the loan ahead of the stipulated tenure, you can do so easily. Either the prepayment charges would be very low or, as is usually the case, there would be no prepayment charges.

2. It allows the property to be put to use When you require funds, you don’t have to sell off your owned property. Through loan against property, you can simply mortgage the property and avail funds. You retain the ownership of your property. Even if your property is let out, you can easily mortgage it for the loan. Thus, the loan makes your property productive. ● Overdraft facility on your loan You can also get overdraft facility on your mortgage loan. This facility allows you to deposit surplus amount in overdraft account and reduce your overall interest outgo and also shorten your loan tenure. This loan is highly recommended to self employed businessmen as they have more surplus funds. ● The facility of top-ups is available Your funding needs might not be completely met with the loan against property. If that is the case, you can also avail additional funding through top-up facility available under the loan. If the value of the property has risen, you can avail additional loan on the increased value of property for further financing needs. ● Easy availability The last benefit of a loan against property is that it is easily available. You just have to apply for the loan, submit the relevant documents and the lender’s assessor would assess the value of the property. Thereafter, the lender offers 40% to 70% of the value of the property as loan. The entire process does not take a lot of time and you can avail the loan quickly. Thus, if you own a property and require funds for your personal or business uses ​avail a loan against property​​ and enjoy its various benefits. ●