No matter how much you save, there will be a time wherein your finances will be strained. At such a time, you will need financial assistance to help you tide over. Though can borrow from your family and friends, this all depends on the amount of funds you wish to borrow. You do not want to unnecessary burden their financial strains in the process.
In such a case, one option that you can use to leverage funds is your property. Through the loan against property you can get the ideal amount of funds you require. Let us look at a few features of the loan to know more.
Cheaper than personal loans
There are plenty of other loans that are available, however, the best options are the personal loan and the loan against property. In a comparison to both of them, the LAP is viable option. The interest rate for the personal is higher, as it comes under the category of unsecured loans. Also, one can choose between a fixed and floating interest rate in this loan, which is not available in the personal loan. You can easily prepay the loan with the banks or financial institutes, just by following the guidelines for the regular home loans. With the personal loan, you can prepay the loan with fixed penalty of 2 to 4%. In addition to this, the tenure for the loan is shorter making it more difficult to pay of a personal loan as compared to the LAP.
Opportunity to re-finance
For those who have limited funds, investing in a loan proves to be a valuable asset. However, if the amounting expenditures are not satisfied by the loan amount, the possibility of applying for an additional loan may not seem viable. Unless your applying for a loan against property. This loan creates the perfect opportunity to re- finance your requirements, especially if you are a businessman who has already applied for a business loan. Although the loan amount may not be sufficiently high, it will still provide you with adequate finance to satisfy your requirements.
Double assets
In loan against property, the property continues to be in the ownership of the borrower. In the event the borrower is unable to pay the loan, they can sell the property for a higher price and settle the loan amount. Additionally, this will also leave them with enough surplus cash for the borrowers to manage their financial life or even grow from it.
Your property is prized at a higher value that what you think. You can easily utilize your property whether commercial or residential to get more than a stable income. In this way, investing will provide you with a lot more benefits than you can think.
Source : articlesbase.com
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