As the name says loan against property is the loan that you avail by keeping your property as a mortgage with the lender. The loan amount is usually between 50 to 60 percent of the market value of the property. It is secured type of loan as you keep your property with the bank. LAP is rapidly gaining popularity mode of finance. You can that money for multiple things as there is no compulsion.
Below are a few top benefits you will be eligible for when you take a loan against property.
Easy to get:
As these are secured loans, banks are more than willing to provide these loans. Therefore, you won’t find it very difficult to get the property loan.
Low-interest rates:
As LAP falls under secure loans by keeping your property as collateral, the loan against property interest rates is generally lower when compared to personal loan. LAP interest rates are usually are ranging between 10 to 12 percent while in the case of personal it is 15 to 18 percent.
Flexible repayment:
A LAP comes with flexible repayment tenure which can be between 10 to 20 years. This gives the borrower the time to repay the amount and thus reducing the financial burden. Use online EMI calculator to know your monthly payments. You can also close your loan by making a prepayment as generally, most lenders do not take prepayment charges.
Multipurpose loan:
Use it as a personal loan or a normal home loan there is no compulsion in terms of using the loan amount. You can use the amount for any of your personal commitments.
There are many banks and private lenders which provide you LAP. Checkout loans against property offer and simply check your eligibility and apply online.

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