Loan against Property is one of the variants of the Personal loans. These are secured loans offered by banks and financial institutions that use one or more properties owned by you as collateral. One can avail this loan for commercial property or residential property securities. In his type of loan, the property is mortgaged and a fixed percentage of the dominant market value of the property (is given to the burrower as a loan. Though the lender mortgages such a property, the borrower is allowed to continue using it for residential or commercial purposes.
Why Loans against property is a better option?
This a better option as compared to a personal loan due to the relatively lower rate of interest charged by the lender. Moreover, unlike gold loans, where the gold ornaments are deposited with the bank and you do not get them back till the loan is paid off completely, you can continue using the property used as a security while you are still repaying the loan.
Preferred the most
This type of loan is the most highly preferred loan in India. With the surge in banks and NBFCs providing these loans, they have become more easily available than ever. These loans are cost-effective and are reasonably convenient to avail and repay due to its low interest rate on loans against property.
A mortgage loan application can be made for the following purposes:
- To expand your business
- To get your child married
- To fund medical treatments
- To send your child for higher studies abroad
- To fund your dream vacation
Features of a loan against property:
- Financial institutions offer higher loan amount, available for a longer tenure at attractive rates as compared to any other loan plans.
- The process of Loan against property is hassle free accompanied by speedy approvals
- Residential and commercial properties can be given as a security to get loans against property.
- Mortgage tools act as a brilliant debt amalgamation tool.