Loan Against Property
“Unlock the power of your Property”
Loan against property allows you to use the value locked up in a property to meet any expenses you may have. While the loan amount depends on the total market value of your property, you are free to use the funds as you see fit. Your property acts as collateral for the loan, but you can continue to use it as before. Loan against Property can be taken for various purposes like expanding your business, Get your child married, Send your child for higher studies, Fund your dream vacation, Fund Medical Treatments etc.
Unique Features of Loan against Property:
- Cheaper than Personal Loans: It works out to be much cheaper than a personal loan, which is usually issued at interest rates in the region of 11% - 21%.
- 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 15 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 Interest Rates:
The interest charged on a loan against property depends on several factors. These include:
- Your nature of work
- The type of property
- The current market value of the property
- Available documentation
- Your income
- Your credit history
The loan against property eligibility depends on whether you are a salaried individual, self-employed or an SME. Your repayment potential is assessed on factors such as-
- Your income
- Fixed obligations
- Credit history, etc.