5 Biggest Advantages of Taking a Loan Against Property

In this article, we will shed some light on some of the greatest advantages one can make the most of when taking a loan against property.

What is Loan Against Property?

Loan Against Property or LAP in short is a type of loan that people get provided they keep their property (residential or commercial) as a collateral with the lender (bank). This loan does not cost an arm and a leg compared to a personal loan. Moreover, it serves a person with a large loan amount for a long period of time. Well, there is hardly any difference between the two types of loans (Loan Against Property in Gurgaon and personal loan). With LAP, you can use the amount for your personal needs, including:

Ø  Family or Medical Emergency

Ø  Business Expansion

Ø  Education Expenses

Ø  Vacations

And many more…!

Let’s take a look at the five biggest advantages of taking a loan against property.

1.         Lower Interest Rate

The first and foremost advantage of getting an LAP is that it offers a lower interest rate compared to the one offered by a personal loan. It is important for you to keep in mind that the personal loan is recognized to be among the costliest consumer loans. Any idea why? Because they are not secured by any monetary deposit. A loan against property, on the other hand, is a secured loan and offers a much lower ROI (Rate Of Interest).

2.         Secured Loan

Here comes one of the greatest advantages of a Loan Against Property in Gurgaon. Being a secured loan, you can get an LAP approved without any hassles. It is not like an unsecured loan where banks or other financial institutions find it hard to recover their money from the borrower.

Truth be told, such loans are probably the best way for giving a boost to your credit or CIBIL score. However, you need to make sure that the title of the property is clear and it’s important for you to provide some evidences to acquire this loan. Need we say more?

3.         Easy Approval Process

Another great advantage of availing an LAP facility for your personal need is that the process for getting a loan against property approved is not complicated at all. Being a secured loan, the investigation of loans seems comparatively easier. In unsecured loans, on the other hand, the risk factor is considerably high as there is no collateral involved.

4.         Simple Documentation

Most of the paperwork is taken care of at the time of purchasing the desired property. So, the documentation process required for a loan against property is not complicated.

5.         Flexible Repayment Tenure

One of the best parts about taking a Loan Against Property in Gurgaon is that it comes equipped with flexible tenure for repayment. It probably last between 10-15 years. However, it can even go up to 20 years in case a person is opting for a high loan amount. That way it becomes easy for a borrower to repay the amount as they get enough time to do so.

A Loan Against Property (LAP) is one of the most favourable types of loans that can work to your advantage in every possible way.