Why should why think before taking a loan against property
by Finway FSC Empowering People FinanciallyWhen you are giving a property as
a collateral it is vital that everything is checked twice before you finally
take a loan. Let us understand the disadvantages that may be associated with
such a loan.
Loan amount is not
specified: When
a certain sum of money is needed, then you must not opt for Loan Against Property.
The reason is that here the loan amount given will be according to the estimated
to price of the property. This may or may not suffice your requirement. So even
after mortgaging a property the loan amount you needed is not what you get, the
purpose becomes futile. In such a case a personal loan can be taken. This will
have more paper work but you will know the amount you are getting as loan.
Risk of losing the
property: When a
loan is taken after mortgaging the property, the tenure of the loan is rather
long. But at times even after that the borrower is unable to repay the loan on
time. This leads to an auction of the property. This is done by the bank to recover
the loan amount. Therefore, if your income is not consistent and you have taken
this loan as a Business Loan in Delhi, then be cautious. Manage the finances well so you are able to
repay it, else, opt for another loan wherein at least the property will be
safe.
Lower value of the
property: The
bank usually estimates the property lower than its actual one. This would mean
that you will get an amount for loan that is much lower. This is done as the
banks estimate the value of the property at a price lower than the usual market
price.
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Created on Nov 19th 2019 01:38. Viewed 432 times.