Financial difficulties are common and credits are the easiest and the best way for fighting a financial crunch. There are a number of personal finances available but the amount in a few cases might not be sufficient, so in a situation like this loan against property or LAP is the best way to deal with a situation like this. LAP is the cheapest form of secured credit in India and the monthly installments are also quite low. So what is a loan against property? Well, this in simpler words means that one needs to keep his residential or commercial property as security or collateral for borrowing the money.
Availing such type of extension is quite easy; you can also “Apply For an Online Loan Against Property” but you should be aware of the required criteria and the advantages of this kind of credit before applying for it.
The advantages of the building finance:
● Easily availed- Getting a sum of money for your asset is not tough and can be done easily from any of the best and the top lending institutions in India. You just need to have all the papers for the collateral and the process would be completed in a short span.
● The lower interest rates- Considering Interest rate also, it is a good option as the interest rate is less. The interest rate for getting credit for your asset varies somewhere from 9.5% to 13.75% as compared to a personal credit which is 10.99% to 24%.
● Availed for multiples purposes- It can be availed and use for a number of financial things; like the renovation of the house, higher education, forbearing marriage expenses or for any medical emergency.
● Longer tenure period- The tenure period for LAP can be 10 to 15 years, so one gets a longer time for repayment. This is beneficial for the borrower as he/she is not burdened or pressurised to give the monthly repayments. As the duration is long the monthly instalments are also quite low.
● Flexible repayment- One has the flexibility with the paying back in loan against property. One gets a money up to 40% to 70 % of the total market value; so it completely depends upon the borrower. It is wise enough to borrow as per your requirement.
Features of LAP
● The process of LAP is quick as compared to the other sum of money borrowed.
● You can pre-close the advance and there are no penalties for it; which means that whenever you have the required money you can pre-close the credit amount without giving any extra payment.
● The ownership of the asset stays with the borrower, which is the best part of this loan.
● The interest is quite low which is good especially if you are borrowing a higher amount.
Loan Against Property India is the best kind of a loan to take, but only those who are Indian citizens and those who own a building can take it.