The current market of the loans is going to provide you with scores of credit products. While some of these products intend to meet specific needs such as education or home loan, for the rest, there may not be any restriction of usage of the mount and are often referred to as multipurpose loans. Among the most popular multipurpose loan that is available today, the personal loan is an expensive product. If you want to avoid the high interest rate of personal loans and looking forward to a better loan option, the loan against land property is a suitable choice. Not only can you get this amount faster, but it is going to be a better and cheaper option as well when you consider the features of the personal loan.
The following are some of the benefits you can get for a loan against your property.
Secured loan
When you apply for a loan against property, there are fewer risk factors and the banks need not worry about recovering the money in case of default. The loan against property is a secured option of financing and a way to improve your credit score. However, the title of the property must be transparent and you may not need to provide a lot of credentials for the process of approval.
Process of approval
Among the benefits of acquiring the LAP, the primary is the ease of approval. There is no doubt that the approval process of this loan is more simplified than the unsecured personal loan. Make sure the property title is not involved in litigation to make the approval easy.
Meets your needs
The LAP you avail can be utilized for various purposes as there are no restrictions on how to use the funds. People often go for this loan amount to fund education, for purchasing a new home, traveling abroad, for medical treatment, and to get support to finance a wedding.
Usage of funds
As far as the property loan is concerned, it is free from any restrictions of use and the borrower can use the money for several purposes. Regardless of the amount you want to avail against your property, it is a perfect fit for meeting your financial needs.
Economical funding option
The land loans you obtain is one of the most feasible ways of obtaining funds for the business. When compared with the interest rates of the other forms of multipurpose loans, the interest rate of this loan is lower. While the interest rate of the personal loan starts from about twelve percent and goes up to twenty-five percent, the interest rate of the property loan ranges between twelve to fifteen percent. Therefore, the property is a pocket-friendly option for the people.
Tenure of property loan
The tenure of property loan is usually high and you can stretch the period of repayment for about fifteen years. However, the longest you can repay for the personal loans, is about five years. If you are looking forward to ease the financial pressure, you must go for the loan against property.
Pre-closing the loan
When you pre-close the loan against property, there is no need to pay penalties or charges. All that you need to do to close the term of the loan is to pay the amount before the maturity of the tenure. However, if you have availed a loan on a fixed interest rate, you may have to pay a minimal amount against the charges of prepayment.
Top-up the loan
The LAP comes with the facility of top-up and similar to a personal or home loan, you can top-up the existing property loan. Fortunately, the amount of top-up can be obtained easily when you are ready to mortgage the same property although there are fewer formalities.
Ownership is safe
When it comes to the secured loan options such as the gold loan, you may not have control over the ownership, but with the property loan, the ownership stays with the borrower. Not only can you use the property as before when you avail the loan, there are no changes in the authority of the ownership as well. The things over which the lender has ownership is the sale deed and the mother deed until you repay the entire amount.
Shoniya sharma is a professional content writer who writes blogs and articles of different niches. She is writing creative post for last 15 years. She works in a reputed company and has knowledge in different fields like finance, business, home loan finance companies technology and many more. So her aim is to educate people through her informative articles.