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Personal Loan or Loan against property Comparison

by Finway FSC Empowering People Financially

Difficult situations can arise in life without any information. Some of which are financial reasons, others can be medical situations that lead to complex problems in life. When medical conditions arise, hospitals can be sought after and when finances are needed, you must resort to banks. Banks provide loans that can ease you out of difficult times. There are many types of loans, some are low interest home loans, others are Business Loan in Delhi, Bangalore, or smaller cities wherever you plan to begin the venture. Loans provide you flexibility and bring you out from an adverse situation at least for the time being.  Other types of loans are personal loans and Loan against property. What you must opt for can be decided once you know what is a personal loan and what is loan against property.

What is personal loan?

A sum of money that you can raise from the bank without giving any property as collateral is a personal loan. This money can be used for any purpose and can be taken for a specific period of time. After the expiration of the time, the entire amount must be paid off along with the monthly installments that are levied along with the hefty interest rate. You may use this money to either make a house, or for a wedding, or even for your business, thus not restricting you from the way you want to spend it.

What Loan against property?

This loan is taken by mortgaging the property. The sum of the loan is about 70% of the estimated cost of the property. In such a case as the bank has a security, the interest is relatively low. However you must pay this within the said time as otherwise, the property will be taken by the bank.

Factors that help you choose between the two loans:

  • Processing Time
  • Interest Rate
  • Extent of Financial Need
  • Span of return of loan
  • Credit Score
These are some of the factors that may affect your decision of taking loans. It is imperative that you first consider them before plunging into the loan business as in either cases it has to be repaid back. You must by now would have perceived that due to high rate of interest you should ideally not use the money for building a home, as it is not low interest home loans and that secured loans are the best Business Loan in Delhi and countrywide as you can expand the business within a stipulated time period.

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About Finway FSC Innovator   Empowering People Financially

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Joined APSense since, September 25th, 2018, From New Delhi, India.

Created on Oct 29th 2019 04:22. Viewed 431 times.

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