What are the benefits of taking loan against property?
by Finway FSC Empowering People FinanciallyOur society is becoming more and more
advanced everyday and with that, the standard of living is rising as well. In
order to fulfill those basic needs, people are resorting to loans. Done
judiciously and with proper consideration, a loan can really help you live
prosperously. What is referred to as loan against property is basically a loan
that is taken by pledging a residential or business space to the lending
authority. Since it is a secured loan, the rate of interest is much cheaper
compared to the personal loan.
Now, when it comes to availing the loan, you
basically have two options: either you can go to the traditional banks or to
the NBFCs (Non-Banking Financial Companies). The problem with banks however, is
that they do not disburse the loan easily. For instance, if you apply for a
loan against property in Delhi, you’ll first have to get your property
evaluated by an agent from the bank in order to calculate its market value at
the time. However, all this process can be handled much easily if you approach
an NBFC, say Finway, for example. Besides using a more efficient disbursement
process, these NBFCs also offer loan on cheaper interest rates compared to
banks. Given below are some of the benefits for availing loans against
property.
The
process of approval is simple
Taking a loan against property in Delhi or
anywhere else is quite simple. Because these loans are secured, they do not
undergo as tight a scrutiny as personal loans. Because of the presence of
collateral, the risk factor is considerably lower for the lending institutions
and hence, the approval process is fast. In an ever-evolving, fast changing
world, getting the loan at the right time can make the difference between
success and failure, which makes loan against property really useful.
Lower
interest rates
Again, for the same reason of being secure,
loan against property has much lower interest rates, which means the borrower
would have to return a considerably smaller sum compared to if he had taken an
unsecured loan.
Repayment
tenure is quite flexible
The repayment tenure can be 10 to 15 years or
even more, in case the loan amount is high. This way the borrower can
comfortably pay back the loan without feeling excessive pressure. Borrower’s
credit score, account history, and market value of the property being pledged,
determines the value of EMI or the overdraft.
Continuous
ownership
One of the best things about LAP is that the
borrower still maintains the ownership of the property. This comes in handy in
case, for some reason, the borrower is not able to pay back the loan. Under
such a scenario, he can sell the property and settle the loan.
Pre-
closure clause
There is an option to pay a certain loan
amount in advance, except if the loan is taken on fixed interest. Pre-closure
allows the borrower to reduce the excess interest amount and the tenure of the
loan by payment of a small additional sum of money.
Unlocking
value of the property
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Created on May 18th 2020 04:43. Viewed 401 times.