Posted on Monday February 18th, 2019

If you got an emergency and don’t have enough funds in your pocket, don’t panic because money is there in your own house. Yes, we are referring to your property. ShubhBank addresses your sudden cash emergency and provide you with Loan against Property. It can be taken against a self-occupied or a commercial building and being a secured loan, the lending rate is very low as compared to other loan products. Any individual who has a home or any other commercial building and is looking for loan, then taking a “Loan Against Property” is a good idea. We have discussed some of the benefits of this loan product that you can take advantage of:

MULTI PURPOSE USE: Loan taken against property can be used for anything just like a personal loan- you do not have to mention the reason, where you going to use the loan amount and how. You can avail a loan for any financial need such as child’s wedding or education, renovating your house, planning a vacation etc.

EASY AVAILABILITY: It can be availed by any of salaried or self-employed individuals who have a property registered on their own name and free from any legal issue. It can be residential, commercial, or an empty plot of land. If you have all the required documents handy, then the processing of loan is faster than other loans.

HIGH TENURE PERIOD AND LOW INTEREST RATE: Being a secured loan, it comes with low interest rate as comparable to other loan products that usually ranges in between 12%-16%. You have an option to choose between fixed and floating rate of interest. This loan scheme offers long repayment tenure that means you will have sufficient time to repay the loan amount.

REFINANCING: This option can be used to increase the loan quantum, if the value of the property has risen over a period of time. This feature is very beneficial for business owners as they can use the same property for their business that is on an expansion spree.

Alongside of some advantages, there are also few disadvantages of taking loan against property that include:

• The loan quantum sanctioned will be up to 60%-70% of the value of property lesser than the actual market price of your asset.
• We are reluctant to pledge our property as we consider it our most prized possession even we are in desperate need of funds.
• The eligibility criteria and accessibility for salaried and self-employed is much different.
• If you don’t make monthly payments on time, you’ll end up losing your most prized possession. So it is not good option for those who cannot manage their finances properly.

Securing a loan against property is a great idea but come with its own benefits and disadvantages. It is one of the quickest and easiest ways of raising the funds when you are in financial need. If you are capable of handling by all means, just go for it. Visit ShubhBank or “Apply Online for Loan Against Property” if you need quick money.