Advantages of Loan Against Property

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Advantages of Loan Against Property:
Wondering what are the benefits of taking a loan against property in India than availing a personal loan? The advantages of such types of loans as compared to personal loans are:

  • Lower interest rates than personal loans: Being available on your property as security, loan against property comes with much cheaper interest rates than personal loans. Loan is available typically at an interest rate of 12% to 16%, whereas personal loans are available at 16% to 21% interest rates.

  • Cheaper equated monthly installments: Since the rate of interests is lower from loan against property, the EMI for the same turns out to be much cheaper than personal loans.

  • Higher loan repayment duration: The maximum tenure for LAP is up to 15 years, ensuring absolute ease of repayment. On the other hand, the maximum repayment duration of personal loan is up to 5 years only.

  • Easy loan eligibility terms: The eligibility for personal loan against property is determined on the income of the borrower and market value of the property. Better your income and value of the property, higher will be the loan amount that you will be eligible for. On the other hand, personal loan eligibility is determined on the basis of your income and credit score.

  • Simple documentation process and fast approval: LAP is a secured loan with relatively minimum documentation procedures and faster approvals than personal loans.

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