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Loan Against Property – More Cost-Effective and Easy to Avail

Whenever your finances are strained and you need a little help to tide you over and  the amount you need is large, loan against property (Residential/Commercial/Industrial)  is a better option for you.

There are a number of banks offer  a loan taking  your property as collateral.  Since it is a secured loan (you are offering a collateral), you can get a higher amount ( up to 90% of the property value ) than the one you will get for an unsecured loan like a personal loan. Typically, the tenure for such a loan is 10 years, but some banks may be willing to extend it to 15 years easily. The interest rate varies from 11.25% – 13.5%, which makes them cheaper than personal   loans .

It’s also a better option since the tenure for these loans is longer than those for personal loans, which offer a maximum term of five years. Of course, the monthly EMI burden will be lesser so the income cash flow can be managed easily. Some banks offer Drop line Overdraft facility ( DOD) with this loan where you can enjoy the term loan as well as the OD benefits.

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