A property is a financial asset. But, for most people, it is also an emotional investment. However, many people are hesitant of using this asset to get a loan.

But, if you need cash, then this is one option you must explore. Here, we have listed some of the major benefits of taking a loan against property to help you make an informed choice.

1. You get a high loan amount – Most properties are high-value and you can get up to 70% of the value as the loan amount. It means you can meet heavy expenditures like paying college fees, wedding expense or financing a new business.
2. You do not lose ownership of the property – One of the biggest advantages of this loan is that you can continue to enjoy the property for self-use. Additionally, you remain the owner of the property. Do remember that if you miss your EMIs regularly and the lender calculates your inability to repay the loan, they can sell the property to recover dues.
3. The interest rate is lower when compared to other loans – Since you are pledging an asset to the lending institution, the interest rate is lower when compared to personal loans. The loan against property interest rate starts as low as 9% and goes up to 24%. But, the actual interest rates depend on a lot of factors as listed on the lender’s website.  

You are putting up a much-valued asset as collateral. So, you need to do your due diligence about the lender apart from researching the interest rate to knowing the loan against property documents required to make the right decision.

Additional Read: How to Ensure Maximum Savings on Loan against Property?