Loan against property is a convenient way to get a loan at lower interest rates than personal loans. Unlike the personal loan, where no collateral is required, in LAP the loan is taken against property i.e. you keep your property as security in case you are not able to pay off the loan in the allotted time period. You can apply for LAP here: https://www.fullertonindia.com/loan-against-property.aspx

Benefits of Loan Against Property

If you have some property in your name, which you can use as security, a loan against property is one of the options. Some of the benefits of LAP is: 

1. A loan against property is a secured loan. 
2. As the property is kept as security, the interest rate is lower than a personal loan. 
3. The tenure for repayment of the loan amount is more than in any other loan. You can also extend the time line up to 15 years. 
4. The EMI loan Against property is lower than other loan types.

Disadvantages of Loan Against Property

While loan against property is a great way to finance your expenses, it comes with its set of disadvantages which are:

1. The amount that one can borrow is directly proportional to the property kept as collateral. 
2. The income laws are strict in the case of LAP as that is the only eligibility norm. 
3. The evaluation of the property is done by the lenders themselves, and thus the value is lower than the actual market value. 

So, like any other loan, LAP also comes with its set of pros and cons. It is important that before you make any decision, make sure to evaluate both, and then decide accordingly. You can use the mortgage loan calculator to get a better idea. 

Must Read: 6 Common myths about loan against property you need to stop believing