If you find yourself in a financial fix in these situations, you might definitely consider applying for a loan. A personal loan seems easy to get, but the interest rates are really high. Why wouldn’t they be? The risks involved with unsecured loans are definitely higher. Gold loans? Well, unless you’re pledging gold bricks or something, you don’t want to lock up that necklace you lovingly got your wife.
So, what else can you do? Use that property of yours!
Be it self-occupied, or rented residential/commercial property, or even a plot of land, it can be mortgaged for a LAP. Banks & NBFCs may also consider a few other factors like your income, debts, and credit score, etc., but the most important parameter is the value of your property.
But there’s more to the story. A few more valid reasons as to why LAP might be the best option for you.
Quick Loans & Affordable Interest Rates
That’s the best part about a loan that falls under the ‘secured category’. With a collateral in the picture, banks & NBFCs are rather comfortable sanctioning immediate loans. Therefore, LAPs are the quickest to get sanctioned. In addition to getting a loan amount that is almost 50-60 percent of the property value, you also get to enjoy the cheapest interest rates between 12 – 15%.
The maximum tenure to repay is 15 years, therefore ease of payment is higher. In most cases, the maximum loan amount you can avail is up to INR 5 crores, and anything more depends on the property. As for repayment, partial pre-closure/prepayment is also an option, sans penalties or extra charges. This helps you reduce the tenure, and subsequently your interest rates.
Easy Refinancing & Overdraft Facility
Has the value of your property increased during tenure? You can always revise your interest rates and your repayment plan. The overdraft facility on the other hand, is where your loan amount is disbursed into a special OD account with a convenient credit limit. And the best part is, you only need to pay interest on the capital used. Both these options help with savings on your interest rates.
Most importantly, the borrower still enjoys independent ownership of the property. If he/she is unable to close the loan, they can always opt to sell the property and repay the amount.
If you’re planning to get a loan for any given reason, and you’re mortgaging your hard-earned property for the same, you need to be in safe hands. Loanz is a web-enabled loan marketplace established to demystify the process of getting yourself your kind of loan. We can help you.