Are you in urgent need of funds? You might not have huge savings to fall back on. Do not worry. A loan against property will help you meet your financial requirements with ease.
What Is A Loan Against Property?
A LAP loan is a secured loan. You borrow money from your lender by keeping your property as collateral. That reduces the risk factor of the lending institution. You can mortgage any property. It might be your house or a residential plot. A loan against property has several advantages over other types of loans. Let us take a look.
1. You Can Borrow A Higher Amount
Since it is a secured loan, your lender will easily give you a higher amount. Personal loans are unsecured loans. So, your lender has a high risk. However, that is not the case with loans against property. Moreover, the amount you can borrow will also depend on the value of your property. Most banks and NBFCs lend around 60 to 70% of the property value. So, if your house costs Rs 50 lakhs, you can easily get a loan of around Rs 35 lakhs.
2. You Can Use It For Multiple Purposes
Home loans can be used only for buying a new house. However, you can use a LAP loan for any purpose. Whether you want to expand your startup, pursue your dream course, or go on a foreign trip, a mortgage loan will always have your back. Your lender doesn’t care how you utilize the money as long as you repay it on time.
3. You Get A Flexible Loan Tenure
You will get enough time to repay your loan. So, there is no hurry. It means that your EMI amount will also be less since the interest payment would be spread out for a longer duration usual tenure is 15 years. It can also extend if the loan amount is higher. However, you can repay it earlier if you can manage the funds from your increased income.
A top-up facility on your loan against property.
4. Low-Interest Rates
The LAP loan interest rate is lower than all other loans. Personal loans have a very high rate of interest as they are unsecured. The interest rates of mortgage loans make them affordable for everyone. You will have to pay lower EMIs. Moreover, your total interest outgo will also be less.
The Bottom Line
Thus, loans against property are the most convenient. They can help you meet all your short-term and long-term financial requirements.PNB Housing offers attractive interest rates on mortgage loans. You can apply online with minimum documents and paperwork. Moreover, they also have excellent post-disbursement facilities. So, their officials will be ready to guide you even after your loan gets disbursed.