What are the benefits of taking loan against property?

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What are the benefits of taking loan against
property? Our 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,
youll 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. Borrowers 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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If a person has a property and is in need of
financial assistance, he can take the loan
against the property. This way, hell be able to
leverage the value of the property to satisfy his
financial needs without having to sell the
property which is a great advantage.