A financial crisis is something that can come in your way anytime and anywhere. At the same time, there are a few financial needs that require a significant amount of funds at a very uncertain point of time. But the matter is not about the need; the matter is how to fulfill this need. Well, a very effective way which one can choose to finance the needs that require some funds is ‘Loan Again Property.’
What Is Loan Against Property?
If you are seeking an effective way to finance your needs that require significant funds, then Loan Against Property (LAP) is the best choice. LAP is actually a loan that you take against your property. It is a secured loan which requires collateral and your property be it commercial or personal is used as a security or collateral. Thus, LAP can help you meet your financial needs. But why to choose LAP is a huge question that must be roaming in your mind. So here we have a few perks that you can enjoy through LAP.
Why Loan Against Property?
There are numerous assets of taking a loan against your property. Here are some major assets that you can enjoy if you take a loan against your property.
Any Type Of Property Works, Provided It Is Yours
Sometimes a loan applicant may get second thoughts about the type of property against which he/ she can apply for a loan. But to a surprise, one can use any property be it personal, residential, commercial or rented to take a loan. If the property is officially yours, then you can quickly apply to get a LAP.
Lower Interest Rates
The major issue that hinders you or warns you for taking a loan is generally the interest rate. But if you are planning to take a loan against the property, then you are not going to have a huge burden. The reason behind this is that the interest rates for this type of loans are generally lower. If you do a comparative study then in case of LAP the interest rate is usually in between 12% to 15% which for a personal loan it ranges between 15% to 21%.
Fulfills Any Purpose Or Need
You are free to use the funds for any of your purposes be it education, wedding, home modification, world tour, etc. You are not answerable to the bank that why you need the loan. Thus, this type of loan can be used to fulfill any desire or purpose, and you do not need to give any second thought before using the funds.
Lower EMI, Hence Easy To Repay
The EMI for any loan is generally set according to the tenure available to repay it. Loan Against Property offers you quite a longer tenure of up to 15 years which in case of personal loan is seven years. And as we know that EMI is inversely proportional to the tenure or longer the tenure lower is the EMI. Thus, you only have to pay a small amount every month. It does not bring in a lot of burden on your pocket, and therefore LAP is considered as a type of loan which could be easily repaid. Hence you do not feel the sudden pressure, and you have enough time to repay the loan.