What you need to know about Loan Against Property

Get loan against property online by knowing the following:

What is Loan against property?

LAP is a loan where you put your property as mortgage with the bank to avail a loan. Generally the bank offers about 50 to 60% of the market value of the property.

As banks accept property as mortgage, your property is 100% secured and safe with them. The bank usually gives you a time tenure of your ease to complete the repayment of the loan.

Why you should avail property loan:

Generally most citizens avail a loan against property that’s quick and easy with its approval process for either their children’s higher education, to expand their business, to buy more property or to simply fulfill their family’s dream of a world tour! The reasons to get a loan against property online maybe many, but what stands out from an LAP are the following benefits:

Benefits of loans against property with quick and easy approval:

• Tempting interest rates: Interest rates on loan against property are usually 12% to 15% as compared to interest rates on personal loans which are between 15% to 25%. This is because the bank keeps your property as mortgage with them until the repayment of your loan.
• Zero prepayment charges: Lenders usually don’t charge you for being good. I mean, if you can prepay your loan then there are no charges for that and you can enjoy the closure of your loan before the designated timeline given to you by the banks.
• Easily accessible: Loan against property is easily available at any bank and you won’t find it difficult to avail a loan.
• Long term partnership: The tenure on loan against property is generally 15 years as opposed to a personal loan which is of about seven years.
• Low EMI: EMI on loans against property shares an inverse relationship with tenure of repayment. The longer the tenure, the smaller will be the EMI. This is good for you if you don’t want to pay a high amount of EMI every month.