Loan Against Property loan against property/loan against property eligibility

LOAN AGAINST PROPERTY

When you offer a property you own (whether residential or commercial) as collateral to take a loan, it is known as a Loan against Property. It

When you offer a property you own (whether residential or commercial) as collateral to take a loan, it is known as a Loan against Property. It is a popular type of loan to take as it is cheaper than a personal loan and offers a larger loan amount over a longer repayment period. It is similar to a Personal loan in that you can use the loan amount for any purpose – like debt consolidation, business expansion, education expenses, family or medical emergency.

Lower Interest Rate:

Personal Loans are among the most expensive consumer loans to take as they are unsecured by any collateral. A loan against property is a secured loan and the rates are much lower. Generally, interest rates on a loan against property can range from 12-16% while interest rates on personal loans can range from 15-22%. Of course, each lender has its own rates depending on your credit profile and other internal policy regulations.
You can get a loan for up to 60 % of the market value of the property which can translate into a sizeable amount of funds. This is far larger than the amount you would get for a personal loan - and it comes at a cheaper cost.
Longer repayment period:

Since it is a secured loan, lenders have a lower lending risk and are willing to grant a longer repayment schedule. The tenure for a loan against property can stretch up to 15 years while a personal loan has a tenure of only 1-5 years.
Lower EMIs:

Because of the longer loan period, the monthly EMI is also smaller, meaning it is a lighter repayment burden over the entire tenure of the loan when compared to a similar sized personal loan.