Personal Loan or Loan against property Comparison
by Finway FSC Empowering People FinanciallyDifficult
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
Sponsor Ads
Created on Oct 29th 2019 04:22. Viewed 565 times.