A loan against property is a secured loan that can be obtained by any individual or corporation by putting up their property as collateral. A property loan may be obtained for a variety of purposes including personal expenditure, business purposes and even to pay off other loans. (checkout your LAP documents here)

As compared to other modes of loan, loan against property holds certain distinct advantages that make it favorable. 

• LAP is easier to obtain:

A property loan is generally easier to obtain as compared to a personal loan, business loan, or education loan. Since LAP involves collateral, the financial institution is more relaxed with regards to the recovery of such loans granted. Loan against property documents required is quite less as compared to personal or other loans. 

• The borrower will get the advantage of lower interest rates:

Since the loans are secured against a property and the loan granted is less than the value of the property, financial institutions are more likely to give you lower interest rates. This is in stark comparison to education loans or personal loans which have high-interest rates. 

• Flexible tenures: 

A property loan may be granted for upto 20 years by certain lenders. This allows the borrower to pay a lower EMI initially and in case of the betterment of financial condition can pay off the loan. The longer tenure though is very useful in the initial years of the loan. 

A property loan might be a solution to stop short term problems or take advantage of opportunities. The above benefits make it more attractive and increase its demand amongst the consumers.

Must Read: What are Difference between Home Loan vs. Loan against Property