Finance News Update
HOW CAN I TAKE LOAN AGAINST PROPERTY?
Who would ever have thought that your own residential or commercial property would benefit you with a specific loan amount or can help you fulfil your dreams, you ever wished for, but you lacked in terms of finances. Well, this is the entitlement of loan against property. This loan has been very beneficial for people requiring a huge amount of money. As, in this category of loan, you are required to mortgage your own residential or even your commercial property as collateral to the bank in order to avail the facility of the loan against property. Earlier, for a loan against property, the bile of documents was required, which made it very tedious for people to provide all these documents. But now, due to many online lending platforms, this process has been made easy to access. There are many benefits which you can avail in getting the loan against property.
CREDIT SCORE
A loan against property is a secured form of a loan, and also since you are mortgaging your own property, due to this not that much preference is given to your credit score, but that doesn’t mean that your cibil score is not considered at all. Lenders generally see in your credit report that if you have ever settled or written off any loan or credit card outstanding. So make sure you check your cibil report before applying for a loan against property.
TENURE OF THE LOAN
The major benefit or the advantage which you get in loan against property is that of the tenure. The tenure for the loan against property can go up to 10 to 15 years. This is beneficial as you don’t have to pay a larger amount of EMI on a monthly basis; it reduces your burden a lot.
LOWER EMI
Since you are getting the benefit of longer tenure, automatically your EMI amount reduces, which you can easily pay off without any stress. As it's better to have a lower amount of EMI than to have an EMI which will be stressful and hard for you to repay.
INTEREST RATES
Another advantage which we avail in loan against plot is that of the rate of interests. The interest rates are lower in this, as it is a secured loan, which means that for the lender providing you with a loan is not at all risky for them, like in personal loan the rate of interest is high as it is an unsecured loan and the risk for the lender increases.