A property is a valued investment, not only for its net worth, but also for the sentiments attached. Many people are, naturally, hesitant to put up a property as collateral for a loan. The article shares the top four reasons why such a property loan, as a loan against property is sometimes called, is an excellent idea.

1. You are the owner of the property – You can use the property for residential or commercial use.  The only restrictions are that the title deeds are submitted to the lender and you do not have the authority to sell the property without loan repayment.
   
2. Use the money to meet different needs – It is the perfect way to monetize an asset and get access to funds to meet various needs. Some of the needs you can cover are shopping, travel, wedding, education, medical, business and more. You should use the loan amount for legitimate activities.

3. Affordable rate of interest – The loan against property interest rate is usually lower than the interest rate of other loans. The interest rate determines your monthly installment. You should use an EMI calculator to calculate the EMI and take an informed decision.

4. Flexible tenures – Most lenders offer tenures going up to 30 years, making it easier for you to repay the loan. One word of caution, nonpayment of an EMI can lead to penalty, and repeated nonpayment can lead to loss of property. 

The final decision to take a loan against property should be based on requirements and after comparing the interest rates, trustworthiness and reputation of the lending institution.

Additional Read: Loan against property vs gold loan: which one should you take?