- If you need a loan for financial emergencies, loan against property offers greater flexibility as compared to a personal loan where you get a lower amount with a higher rate of interest.
- Loan against property is a secured mode of finance, therefore banks and private lenders are always willing to offer it to the discerning borrowers who are willing to pledge their property as collateral security.
- Loan against property interest rate is comparatively lower which results in lower EMIs making it easier for the borrower to address other financial needs without straining his budget.
- A loan against property generally has longer repayment tenure of five to fifteen years as compared to a personal loan which generally has a five-year tenure.
- Documentation for a loan against property is quite simple and banks and private lenders are not very stringent about the credit score of the borrower with credit rating agencies.
- The property documents of the borrower are kept under the safe custody of the lender and are returned once the loan is repaid in full. All the ownership names are transferred back to the customer without any setbacks.
- Loan against property can be availed for multi-purpose like child’s higher education, wedding in the family, for renovating the house, or for any other financial need.
- Loan against property can be availed by salaried individuals, self-employed individuals, and professionals who have a property registered in their name and which is free from any legal issues. The property can be residential or commercial, or an empty plot of land. The processing of these loans is quicker than other loans, provided all the necessary documents are in order.
