5 lesser known facts about loan against property

Mahesh Sharma is a regular private school teacher whose son, Manav, aged 19, has recently graduated with an engineering degree. Manav wishes to pursue a master’s programme in the United States and he indeed managed to bag an admission in a reputed college with a partial tuition fee waiver and a considerable stipend to cover his stay cost. However, he would require paying up the remaining tuition fee of Rs. 10,00,000/- to seal his admission. Being a modest schoolteacher, Mahesh couldn’t garner much in terms of bank savings, but he was determined to fulfil his son’s dream and see him do well in life. Instead of an education loan, Mahesh mortgaged his house and availed a Loan Against Property at a much lower interest rate. Mahesh is now a content father since he could successfully fulfil his son’s dream.

What is a Loan Against Property?

Loan Against Property is a secured loan that one can avail at a lower interest rate by mortgaging their property such as a house or a piece of land as collateral. Given their affordable rates of interest, they are much preferred over personal loans that may sometimes offer interest rates as high as over 15 percent.

5 lesser-known facts about Loan Against Property

Loan Against Property does not just serve as an instrument to fulfil financial emergencies but it is also a convenient way of fulfilling one’s financial goals. Here are five little known facts about Loan Against Property.

Home Renovation:

Availing a personal loan to refurbish your home could be a mighty costlier affair. A Loan Against House or  Loan Against Plot that you may own can come in handy if you want to renovate your existing home with lavish interiors, painting, or miscellaneous repair work.

Fulfil Higher Education Needs:

Education is a commodity today and not to fall behind, the current generation of parents are increasingly opting for world-class higher education for their kids in no less than foreign universities. To meet these escalating education costs, parents are determined to even go for education loans that could cost them dearer. In such a scenario, availing a Loan Against Plot in your possession for much lesser interest would be a wise option that can ease the burden off your pocket.

Business Development:

Establishing a new business or restructuring an existing one isn’t a cakewalk. A large sum of capital would be required to meet the necessary costs in the form of operational expenses, infrastructure purchase, and hiring resources. To this end, you could avail of a Loan Against House in your possession for an affordable interest rate along with a flexible tenure window to repay the loan. The Loan Against Property available on Bajaj Markets allows you to avail a loan amount of up to Rs. 1 Crore repayable within a flexible tenure of upto 30 years.

Vacationing:

Working hard across the year and unwinding with that one big exotic holiday at the end of the year is a trend that’s currently in vogue. Exotic family vacations are even more expensive and if you are cash-strapped, availing a Loan Against House at a lower interest rate than a personal loan could be your best bet.

Clearing your credit card debt:

 If your credit card bills have been piling on for months now with compounded interest, do not just rush in to avail a personal loan to clear the bill when you own a piece of plot or property. Availing a Loan Against Plot would not only clear your pending debt at a cheaper interest rate but also rescue you from the dearer rates of interest than a personal loan has to offer. Also read about mistakes to avoid while taking loan against property.

Conclusion

It is quite common that our financial execution may not always be in line with our financial planning. There are always highs and lows when it comes to handling personal finances. Meagre savings might make you think about availing a hassle-free personal loan to meet your urgent financial needs. But if you possess a property, it must be pointed out that Loan Against Property is a much more viable and hassle-free option owing to its cheaper interest rates and flexible repayment tenure. On Bajaj Markets, availing a Loan Against Property is completely non-tedious and one can enjoy benefits such as part-payment, balance transfer, top-up loan at minimal fee and documentation.