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Is loan against property a good idea?
Posted on Wednesday, August 10th, 2022 | By IndusInd Bank
When faced with a financial crunch, the first thought that people come across is how to overcome the situation. While you always have the option to borrow funds from your friends or family, this might lead to problems in future. A safe way out is to apply for a Loan Against Property.
Considered one of the most secured loan options, LAP has the lowest interest rates. By applying for LAP, you can use the locked value in the property without vacating the premises. Not just this, LAP also offers many other advantages. Read the article to find out why you need to opt for LAP.
What is a loan against property?
As the name suggests, when you opt for LAP, you put your residential or commercial property as collateral and a get certain amount of money as a loan. These loans are secured by your property, which makes you eligible to get a higher amount from the lender than unsecured loans.
In case you fail to repay your loan, the lender has the right to sell off your property to recover their money. So, make sure to get a deal that doesn’t become a major financial burden.
Why loan against property is a good idea?
A loan against property is a great idea when you need large sums of money for the following reasons:
Lower interest rates
A LAP is a secured loan, which is why, the interest rates are low and tenure is longer as compared to unsecured loans. The monthly repayment amount is manageable and the loan doesn’t end up becoming a financial burden.
Unlock the hidden value of your property
When you take a Loan against Property, you do not have to quit the occupancy of your property or sell it. It is an ideal way of unlocking that hidden value in your property.
Quick and easy process
As already discussed, LAP is a secured loan, so lenders are more than happy to disburse your loan amount faster. This makes loans against property a quick and easy way to finance large sums.
Last words
So, to sum it all up, a loan against property is indeed a great idea when your financial requirement is large and you need money quickly. If you are looking for a loan against property at attractive interest rates, check out IndusInd Bank’s loans against property right here.
Disclaimer: The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Hence, you are advised to consult your financial advisor before making any financial decision. IndusInd Bank Limited (IBL) does not influence the views of the author in any way. IBL and the author shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information.
