Features of Personal Loan

All loans are not created equal, personal loan has become a great option for people to use.

• Secured Loan: The property that you own acts as collateral for the loan. This means that if you fail to repay the loan as agreed upon, the lender has the right to take possession of the property and sell it to recover the outstanding loan amount.
• Higher Loan Amounts: Since the loan is backed by valuable collateral, lenders are often willing to provide higher loan amounts compared to unsecured loans. The loan amount is usually a percentage of the property's value, typically ranging from 40% to 70%.
• Lower Interest Rates: Secured loans like Loan Against Property generally have lower interest rates compared to unsecured loans, such as personal loans, due to the reduced risk for the lender.
• Flexible Use: Borrowers can use the funds from a Loan Against Property for a variety of purposes, such as funding business expansion, higher education, medical expenses, debt consolidation, or any other legitimate financial need.
• Longer Repayment Tenure: The repayment tenure for Loan Against Property is typically longer than that of unsecured loans. It can range from 5 to 20 years, depending on the lender and the borrower's eligibility.
• Eligibility Criteria: Lenders assess the borrower's eligibility based on factors like the property's market value, the borrower's income, credit history, and repayment capacity. The value of the property and the borrower's ability to repay the loan are crucial factors in determining the loan amount and terms.
• Processing Fees:. Lenders may charge processing fees for evaluating the loan application, conducting property valuation, and other administrative tasks.
• Property Valuation: Lenders usually assess the property's value before approving the loan. The loan amount is determined as a percentage of the property's current market value.