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Personal loan or loan against property: Which one is better?

One solution for Mortgage loan, Property loan and Loan against home with HDFC.<br>

TomCraig
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Personal loan or loan against property: Which one is better?

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  1. Loan Against Property

  2. Personal loan or loan against property: Which one is better?

  3. What is personal loan? Personal loan as the name suggests, is an unsecured loan that you can raise from bank for your personal use. • There are no restrictions on the proceeds of the loan amount – you can use it to pay off your debt, construct a house, set up your business or even for your wedding etc. • What is loan against property? A loan against property (LAP) is a secured loan disbursed against the mortgage of the borrower’s property. • It can be residential property (either self-occupied or a rent), commercial property or even a piece of land.

  4. Processing time: As a loan against property is obtained by mortgaging the borrower’s property, the lender has to verify related documents before disbursing the loan. • The lender may also undertake technical study to confirm the ownership of the property and find out its market value. • In addition to this, you will be asked to submit documents supporting your income to judge your loan repayment capacity. • This entire process can take anywhere between 15 to 30 days and hence, Loan against Property is not suitable for those seeking quick disbursal of loans.

  5. The main factor determining the interest rates in personal loans is the borrower’s credit score. LAP will • Tenure of loan: In case of LAP, the loan tenure can be as high as 15 years whereas the upper limit of personal loan is usually around 5 years. • The longer tenure of loan repayment brings down EMI payouts, which increases the affordability of big-ticket loans. However, the flip side is that the longer tenure would also result in higher interest payout. • [Source: http://www.moneycontrol.com/news/loans/personal-loan-or-loan-against-property-which-one-is-better_6365581.html]

  6. Click to know more on Loan Against Property : https://www.hdfc.com/non-housing-loans/loan-against-property-salaried Thank You…

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