When the need arises to borrow money, aspiring borrowers must pick from secured or unsecured loans. Both loan types give a remarkable degree of financial freedom to the borrowers. However, a Property Loan is an intelligent choice to avail of the required funds. Here are a few advantages of taking a Loan Against Property.

Obtain a Bigger Loan Sanction: Lending institutions lend a LAP against a property pledged as collateral. Therefore, the loan sanction depends on the collateral property’s value. Most NBFCs sanction up to 70% of the property’s current value, allowing a bigger loan sanction per the requirement.

Enjoy a Reasonable Interest Rate: Since it is a secured loan, the Property Loan interest rate is more reasonable than unsecured loans. If the borrower fails to repay the loan, the loan provider has the right to seize the collateral and get its money back. So, the lower risk encourages lending companies to offer reasonable interest rates.

Repay Over a Longer Term: Extended loan tenure is the key benefit of taking a Property Loan. Reaching up to 15 years, the longer loan term makes EMIs more affordable on a budget. Borrowers can use an EMI calculator to estimate the EMIs and select a suitable loan term according to their repayment capacity.

Loan Against Property is an excellent funding option with flexible repayment facilities and instant access to the required finance. Check the lending company’s Property Loan interest rate and eligibility criteria to enjoy the perks it brings. However, be sure to pay the EMIs on time to keep your collateral secured and get the most out of it.

Also Read: How Interest rate and repayment tenure are key deciding factors for Property Loan?