Liquidity of cash in the current economic stature is a boon. There are times when you have property, but you require cash to overcome a certain big expense. A massive financial requirement can crop in various situations, like Education Abroad, A new Business Set up or even for a grand marriage. It is for these reasons that secured loans are being taken. In states like Haryana and Himachal, where you will find landowners taking money on interest, these secured loans have put this abrasive vicious cycle of taking money from lenders to an end.
Long Repayment: When you opt for secured loans, you get almost 50 to 60% of the total property cost. To repay this cost, the bank grants you enough time. This tenure is generally for years from 10 to 20 years. This not just provides adequate time but also relieves the borrower from any immediate financial burden.
Easy approval: Opting for a loan Against property is not as tedious as taking a new loan. Since the bank gives the loan against an asset, the process of approval is rather liberal. Having a property is always beneficial and collaterals prove that property is ‘gold’.
Low Interest Rate: Opting for Loan Against Property does not exempt you from paying the interest; however, the interest levied is very minimal since the bank already has the property as collateral. The borrower here has the option to repay the loan in easy installments, making life simple and stress-free.
Pre Closure: Once you have enough cash and liquidity, you can always opt to close this loan before the stipulated time. Just like any other loans, there is no extra charge by the bank for closing the loan and freeing your property from the bank. The bank charges a prepayment penalty if you had opted for a fixed rate of interest on the loan.
Optimum property Utilization: If you are not the end-user, the property that you have can easily get you liquidity through the loan against property option that every bank has. Having a property is beneficial in a case when you do not want to sell it off. In anticipation of a consistent income or benefit, you can always take advantage of your property.
Similarly, loans for constructing a home or any building is available with quick disbursal and less processing time.