LAPs are extremely easy to procure, considering the secure nature of the credit line. Moreover, as they aren’t particularly credit score dependent, loan rejection isn’t a restrictive issue, provided every property document is in place.
In the subsequent sections, we shall take a closer look at the efficacy of LAPs when financial independence is concerned and why the same is the best option to get your hands on a sizable stash of cash.
- Decent LTV
Based on the property valuation trends in the bigger cities like Delhi, Mumbai, and Gurgaon, you are expected to get a decent LTV (Loan to Value ratio) or a bigger sanction on the property value for the loan against property, provided the lender has faith in your repayment capabilities. In most cases, you can even get an amount that is worth 60 percent of the existing property value.
- Competitive Interest Rates
A LAP needs to be repaid like any other loan and therefore it is advisable to consider getting a loan against property interest rate to be financially independent, both in the long and short run.
- Flexible Repayment Tenure
If and when the LAP serves as a business loan, you can add a sense of flexibility to the repayment scheme by opting for a customized tenure. Then again, you need to be well-aware of your financial stead before proceeding with the tenure adjustment.
In India, LAP is an extremely popular form of financing, provided you require sizable funds with minimal sanctioning dependencies.
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