How A Loan Against Property Can Be The Best Option?

  • Added:
    Jan 22, 2014
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How A Loan Against Property Can Be The Best Option? Photo by Aishwarya Mahurkar

In today’s economy, there are several people, who opt for loans to fulfil their desires. The process of taking a loan has been simplified over the last couple of years. From micro-loans to personal loans, the masses have several options to choose from. Therefore, it is imperative to educate yourself about the various kinds of loans in order to make sound financial decisions.

Loans can be divided into two basic types: secure loans and non-secured loans. If you take a loan without equivalent collateral that you own, then you have chosen a non-secured loan. On the other hand, if you allow the bank/financial institution to include collateral that is equal to the principal amount of your loan, then you have opted for a secure loan. Though it may seem like anyone can opt for a non-secured loan, that isn’t the case. Non-secured loans have higher interest rates as well.

Most people worry about not having any collateral. However, a majority of the audience doesn’t know that a loan against property is one of the easiest and the fastest loans available in the finance market and has several advantages too.

Firstly, the loan application process can take a large amount of time to evaluate the risk in providing you with the funds. With secure and reliable assets like property, the process is completed much faster and you would receive the loan in a much shorter time period. Secondly, the interest rates for a loan against property  are much lower than the non-secured loans, which are considered more risky. Thirdly, if the required amount is lower than the market evaluation of your property, you could get the amount far more easily than waiting for a non-secured loan. However, it is important to make the repayments on time to retain the possession of your property and enjoy the benefits of the same.

A loan against property, apart from this risk, is the best option for people, who wish to take a loan. If you have your own home, getting a loan against it would be much easier than establishing your eligibility, repayment capacity and stability of income for a non-secured loan. When it comes to the loan against property option in India , the masses are greatly uninformed. With the right amount of information, most people can easily get a loan and pay it off before they even know it. It would be a far easier and quicker process, making it one of the best options available in the mortgage market.

Author's Profile

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the different types of home loan products such as Housing loan, Home improvement / renovation loan, interest rates for a loan against property, land / plot loan & processes that cover loan against property option in India & obtaining finance

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