Top Queries on Loan Against Property
Category : Loan Against Property
What is a Loan against Property? How is it different from a Home Loan?
The 2 loans are poles aside. A loan against Property is a multi-purpose loan. The end-use might be funding your elder little one’s marriage, your more youthful baby’s schooling overseas, increasing your corporation. The collateral (secured asset) for this loan is a property which is already in existence or a plot of land. A Home loan however is taken only for the intent of purchasing a residential property.
Why should I take a mortgage towards Property?
Your assets like gold, FD etc. can be used as collaterals for loans. Real estate is a valuable asset. Which you could leverage this asset and obtain crucial money.
Shall I take a personal loan or a mortgage against Property?
An personal loan can be an all-purpose loan. Nevertheless, no collateral is required for a personal loan. If in case you have a property, you will have to leverage it for money. A loan towards Property ratings over a private mortgage for the following motives:
- An personal loan is available at steeper interest rates as in comparison with a loan against Property
- An personal loan is on hand for shorter periods (1-5 years) even as a loan towards Property is most of the time on hand for longer tenures of upto 15 years.
- The Processing fee is lesser for loan against Property as in comparison with a personal loan.
Can a self-employed individual avail of a loan against Property?
Yes. Both salaried and self-employed candidates can acquire a mortgage against Property.