Loan against property is designed to provide considerable funds that can help the borrower to invest in a dream project, finance their child’s education abroad or only for a daughter’s wedding or use it to consolidate debt. But before you apply for the loan, you must understand several myths about loan against property. To take an informed decision, here are a few myths and truth behind them.
Myth 1: Taking loan at a higher rate of interest instead of having your home as collateral
If you have an impressive enough credit score, then it is advisable to take a loan without any guarantee. Also, because of your impressive CIBIL score, you might be eligible for the lucrative loan against property interest rate. There are many financial options which are more affordable than loan against property.
Myth 2: Borrower cannot use collateral property
Many times, borrowers believe that they cannot use the property that they pledged while taking a loan. It is hugely misleading. The borrower has the complete right to use the property after he/she has secured funds, and throughout the tenure of the loan. The property will come under the ownership of money lenders, only if you fail to repay the loan.
Similar Read: LOAN AGAINST PROPERTY: HERE ARE THE TOP BENEFITS
Myth 3: The borrower can get the loan amount at the full property value
It is a myth. The moneylender will only provide you 70% to 90% off your property value as a loan amount. Besides your credit score and the tenure of the loan also affects the granted loan amount.
PNB Housing Finance Limited offers flexible loan facility, the nominal rate of interest, quick disbursal, and flexible repayment options.
Additional read : What Are The Features Of Commercial Property Loans?
