Nowadays banks and other financial lending institutions provide loan against property which can be applied in case of a residential and commercial building or any piece of land. The property is kept as a mortgage with the bank and the person can apply for a personal loan anytime. The amount of loan depends on the type of property and its market value is assessed before the loan amount is distributed to the applicant.
Loan against property is one of the secured loans that a person can apply for, a secured loan meaning that the property acts as a security for the loan amount. In order to recover the loan amount, the property held with the bank can be sold to recover the due.
Advantages of applying for loan against a property
- The loan against property comes forth with a high tenure so that the person can pay the loan in easy EMIs. The period of repayment can last from 10-15 years.
- The loan against property comes forth with a lower rate of interest and is beneficial for the person applying for the loan.
- Its value amount is higher than that received when applying for the personal loan as the property is mortgaged at a higher value.
- The amount of loan amount received depends on the market value of the property which is why the amount of loan provided is more that of a personal loan.
The various interest rates available for a loan against property
People who wish to apply for a loan against property can easily choose between two key interest rates depending on their needs. The interest rates differ depending on the duration of the loan demanded by the individual applying for the particular loan amount.
- Fixed interest rates: This rate remains fixed throughout the loan duration, however, the rate varies from lender to lender.
- Adjustable rate: This rate changes depending on the market values and is beneficial for those who wish to apply for the loan for a short duration.
Antworks Money provides the best loan against property in Gurgaon by bringing together different banks on a single platform to compare and choose the best. The company is known for its good interest rates that are beneficial for both short and long duration money lenders and applicants.
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