Loan against property – All purpose loans

Loan against property – All purpose loans

Loan against property is basically an all purpose loan. The loan can be obtained in case of emergency. There is a personal loan available too, but it comes with a high rate of interest with short tenure for loan repayment. Therefore, many of us cannot afford to take a personal loan, but makes it affordable for everyone.

If you own a property for example a house, you can take a loan against your property and it is cheaper than taking a personal loan. The reason for loan against property being affordable is that the lender has mortgaged security in the form of your property; therefore he will not have to face stressful situations where the borrower fails to repay the loan amount.

In case of personal loan, there are no terms for security. Also, the loan given against your property comes with longer period for repayment. You can avail the loan for any requirement that needs financing. The requirement differs for example, funds for business, for emergency situations, marriage, education etc.

For personal loans, you need to mention the specific reason as why you are taking the loan, but this loan doesn’t have any such rule. Some banks also provide loan against residential as well as commercial property. Some banks provide loan against residential property only. Some banks also provide special schemes with the loan against property like insurance cover for accident.

To avail this loan you should be above 21 years and maximum age should be 60 years. You can be either self-employed or salaried person. The documents you need to apply for this loan are

Identity proof

Proof of your residence

Salaried individuals need to submit their IT returns (latest)

Self employed individuals should submit the calculation of their income generated in last two years.

The overdraft option that is associated with this loan is the biggest advantage. The option of an overdraft is offered by some banks, which helps the borrowers pay interest on the loan amount withdrawn throughout the tenure of the loan till the time the entire loan is repaid



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