Loan Against Property

Simply put, a loan against property is what it actually connotes – a loan given or disbursed against the mortgage of property. This is unlike a personal loan, which is disbursed to an individual; no questions asked. The loan is given as a certain percentage of the property’s market value (usually around 40 per cent – 60 per cent).

But the threshold amount too is generally defined by most lending institutions like say, 200,000. This multi-purpose loan puts funds at your disposal to use as you wish. It unlocks the hidden value in the property you own.

Features at Glance :

• Loans from 2 Lakh onwards depending on your needs.
• Borrow up to 70% of market value of the property.
• Flexibility to choose between an EMI based loan or an overdraft.
• High tenure loans for ease of repayment.
• Attractive interest rates.
• Simple and speedy processing.
• Loan for salaried & self-employed individuals.

Advantages of taking a Loan Against Property :

• Cheaper than Personal Loans : It works out to be much cheaper than a personal loans, which is usually issued at interest rates in the region of 16 per cent-21 per cent.
• Longer Loan Tenure : The tenure for a Loan Against Property is usually longer than that for a personal loan. Generally, LAP is given for a maximum tenure of 10 years.
• Lower EMI : Since the rate of interest is lower, many times, LAP Equated Monthly Installments (EMI) turn out to be cheaper than those under personal loans.
• Simple documentation and Fast Approvals : LAP being a secured Loan has comparatively faster approvals and minimal documentation.

Loan Against Property can be taken for following purposes :

• Expanding your business.
• Get your child married.
• Send your child for higher studies.
• Fund your dream vacation.
• Fund Medical Treatments.

In nutshell, Loan Against Property is a secured multi-purpose loan with larger tenor and lesser rate of interest.