Personal Loan or Loan against property Comparison

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

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Created on Oct 29th 2019 04:22. Viewed 560 times.

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