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If you’re conflicted between whether you should opt for a loan against property or go for a personal loan instead, let us tell you why an LAP is better for you.
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Why A Loan Against Property Is Your Best Choice for Any Financial Emergencies
Taking a loan against property in case of emergencies is an age old practice. • Mortgaging homes or properties for loans has been done even before banks existed. • Even today property is said to be the best investment and people have often use their own homes as guarantees or as a mortgage. • Loan against property is preferred by many because this way you can get a higher loan amount with the benefit of lower EMI.
Mortgage loan interest rates are also low and they also have longer repayment options. • Recently, Crisil said in a note that the amount of loans taken against property is set to double to Rs.5 trillion by 2019 and it is expected that the number will grow by 22% annually in the next four years. • There are also emerging signs of a build-up in risk as competition intensifies, Crisil noted
If you’re conflicted between whether you should opt for a loan against propertyor go for a personal loan instead, let us tell you why an LAP is better for you. • Personal loan interest rates are way higher than those of loan against property. • This is because in a personal loan you do not have collateral with the bank. • The difference between the interest rates can rage anywhere from 4% to 5%, which can mean a lot of savings.
Since you’re keeping your own property as collateral banks will offer you a higher amount. • The amount will be based on the valuation of your property.
