Is Loan Against Property Beneficial?

Loan against property in Noida should be considered or not. Now a days loans are easily available if you have a good credit score and earns decent every month. When considering loan against property, there are many questions that comes up in mind. Is it really beneficial to raise a loan against property? Let’s have a look at the points favouring our topic. 

 

* Can be used for any purpose

This loan can used by the borrower for any purpose as long as it is legal and legitimate. It is as similar as other loans and can be used for child's education, home construction/renovation, child's wedding, medical expenses, expansion of business, etc.

* Enjoy Lower rate of interest

The variation of rate of interest on a Loan Against Property is approximately between 8.50%-13%, which is comparatively lesser than personal loans. This rate of interest totally depends on various factors such as value of a property, loan amount, and your ability to repay the loan.

* Tenure of the loan:

The tenure for loan against property is almost 5-15 years. In case you have other running loans then you can opt for 15 years to have reduced EMI’s.

But don’t forget to consider that a longer loan tenure period is equal to paying higher interest.

* Larger amount can be borrowed

Another benefit is that higher the value of the property, higher is the loan amount you can borrow. The lending amount is almost equal to 50%-70% of the property's current market value.

* No need of credit score check:

There is no particular need of having a good credit score for Loan Against Property since it is backed up by property. But, it depends on the lender as well that what factor it may consider for approval of the loan. It is advisable to hold a good credit score to have better chances of availing the loan.

Thus, there are many points in favour for choosing loan against property in noida.

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