The first thing that comes to the mind of any salaried individual is security for the future. Our minds are constantly plagued with questions like here will the money come from One of the best and yet not often thought about means to ensure this money flow is a loan against property.
What does loan against property mean
The term is quite self-explanatory. It means a loan provided by the mortgage of a property. This loan is usually around 40-60% of the value of the property. The best thing about loan against property is that it belongs to the secured loan category. This implies the person who has borrowed the money gives a guarantee to the lending institution about returning the money by using his property as security.
Features of loan against property:
There are certain features of loan against property which ensures that this is the most secure backup plan for future financial emergencies-
1. Lower limit which starts from 2 lakh without any upper limit
2. Option for both fixed and floating rates are available
3. Tenure of repayment is longer
4. Interest rates are cheaper
5. The method of processing the loan is extremely simple
6. The value is placed for 40-60% of the property
Benefits of loan against property:
The best thing about loans against property is that they are extremely easy to avail. The trust of the lending institution usually tilts in favor of a borrower who asks for a secured loan as opposed to the one who asks for an unsecured one. Loans against property have numerous benefits when it comes to thinking about the future-
1. Higher loan amount- if you have the correct kind of property to mortgage, then chances are that the loan amount provided against the property will be extremely high.
2. Multiple options for repayment- the repayment of the loan can be made either in parts or paid off entirely in advance without any sort of charges for the same.
3. Quick approvals- loans against property are much easily approved as the loan is secured. It typically takes only 1-2 days for the loan processing to be completed.
A loan against property is actually the fastest way to raise money. Moreover, a borrower knows what they are getting into and non-repayment of the loan would imply confiscation of the property. It provides you access to immediate funds all while simply placing your property as collateral.
For a salaried individual who is dependent on the paychecks, loan against property is the best option. It helps you plan out your expenses and ensures that you know where you have to put your money in. Whether it is for the education of your children, marriage, medical expenses or any other sort of unforeseen expenditure, loans against property is the easiest and best available guarantee for a future monetary emergency.
Disclaimer: The information contained in this post is for general information purposes only. IIFL Home Finance Limited (including its associates and affiliates) ("the Company") assumes no liability or responsibility for any errors or omissions in the contents of this post and under no circumstances shall the Company be liable for any damage, loss, injury or disappointment, etc. suffered by any reader. All information in this post is provided "as is", with no guarantee of completeness, accuracy, timeliness, or of the results, etc. obtained from the use of this information, and without warranty of any kind, express or implied, including, but not limited to warranties of performance, merchantability, and fitness for a particular purpose. Given the changing nature of laws, rules, and regulations, there may be delays, omissions, or inaccuracies in the information contained in this post. The information on this post is provided with the understanding that the Company is not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. This post may contain views and opinions which are those of the authors and do not necessarily reflect the official policy or position of any other agency or organization. This post may also contain links to external websites that are not provided or maintained by or in any way affiliated with the Company and the Company does not guarantee the accuracy, relevance, timeliness, or completeness of any information on these external websites. Any/ all (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan product specifications and information that may be stated in this post are subject to change from time to time, readers are advised to reach out to the Company for current specifications of the said (Home/ Loan Against Property/ Secured Business Loan/ Balance Transfer/ Home Improvement Loan/ NRI Home Loan/ Home Loan for Uniformed Services) loan.