Advantages

  1. Cheaper than Personal Loans: It works out to be much cheaper than personal loan, which is usually issued at interest rates in the region of 16 per cent-21 per cent.
  2. Longer Loan Tenure: The tenure for loan against property is usually longer than that for a personal loan. Generally, LAP is given for a maximum tenure of 10 years.
  3. Lower EMI: Since the rate of interest is lower, many times, LAP Equated Monthly Installments (EMI) turn out to be cheaper than those under personal loans / unsecured loans.
  4. Simple documentation and Fast Approvals: LAP being a secured Loan has comparatively faster approvals and minimal documentation.

Loan Against Property can be taken for following purposes:

  1. Expanding your business
  2. Get your child married
  3. Send your child for higher studies
  4. Fund your dream vacation
  5. Fund Medical Treatments

In nutshell, Loan Against Property is a secured multi-purpose loan with larger tenor and lesser rate of interest.