Loan against property is also termed as a property loan or a mortgage loan. This type of loan depends on 1 factor i.e. you must be the owner of a property. When you’re the owner, Banks allow you to opt for this loan.
What’s the process to get a loan against property?
It’s pretty simple. You can apply for a loan against property with the Bank/NBFC. They will check your personal and Banking KYC. Then they will evaluate your property to find out its current and true market value.
Once the value has been defined and your eligibility has been checked, Banks can offer anything between 40-75%* of your property’s value as the loan amount. Loan against property interest rate will depend solely on your income level, credit history, and property value.
Why opt for a loan against property instead of a personal loan?
The answer lies in the vast difference between the loan amount. Personal loans often lie between 1-10 lakhs. In rare cases, this amount might be higher. But a loan against property can be higher than 50-75 lakhs as well.
What are the Loan against property ways for Debt consolidation?
Debt consolidation is the process where you take one large debt and use the loan amount to close all smaller debts. This process is fruitful only when you can save interest money.
Here are some ways, a loan against property can help you consolidate multiple debts:
1. If you have multiple credit cards whose bills haven’t been paid along with 1-2 personal loans, then it is a wise choice to opt for a loan against property. With the loan amount, you can clear all these debts and just pay one single EMI at a lower interest rate.
2. If you had a medical emergency at home and used up your credit cards and a personal loan, then taking a loan against property will help you close these high interest-paying debts.
3. When extra funds are needed for higher education and you have already taken a huge education loan, then with the help of a loan against property, you can sort this expense and ensure your child has a bright future.
This is the power of your property. If you wish to unlock the true potential of your property, do visit our website and Click Here!