In contrast with the past, availing funds has evolved into an easier task. You can classify the finance options mainly into two – secured loans and unsecured loans. The primary difference between both is the presence of collateral, which the banks/NBFC can leverage to provide financial assistance. Secured loans like Loan Against Property carry more significant benefits than others.

Let’s know about LAP in the following section.

• LAP- Better interest rates:

Loan against property (aka) LAP is one of the types of secured loans that have the edge over the other loan types due to their long tenure and lower interest rates. You can use a loan against property calculator to determine the tenure, interest rates, and the monthly EMI of your loan. Here’s how you can have low monthly EMI using a loan against property:

• Tenure:

A longer tenure means lower monthly EMI. Again it all depends on your discretion. If you need a loan with a shorter tenure, your monthly EMI can increase. A smart planner will choose an optimal tenure after devising a repayment phase that would not hurt the finances.

• Credit Score:

Your credit score plays a prominent role in lowering your monthly EMI. Most of the lenders are happy to provide funds to borrowers with higher credit scores. On a scale of 300-900, anyone above 700 stands a better chance of availing low-interest loans. 

Conclusion: 

If you wish to leverage your assets, you can use a loan against property calculator to avail better interest rates and plan your repayment phase accordingly.

Must Read: IS Availing Loan Against Property More Cost-Effective Than Others?