Last Updated on April 7, 2024 by Umer Malik
Are you in immediate need of funds to sponsor your education or to cover any medical emergency? Worry not! You can take the help of funding called a loan on property whereby you can keep your existing property as a guarantee against the loan amount. The guaranteed property should be registered in your name. This loan comes under the secured loan category as you will be pledging to give away your property in case of failure of repayment of the loan. This is an ideal option if you need a loan in the minimum time. Apart from a fully constructed house, if you have a piece of land or a commercial building in your name those things are also eligible to be kept as collateral. Because of the provision of an affordable rate of interest, a property loan is preferred over a personal loan. Let us elaborate on these things.
A loan on property is taken to fulfill different financial goals. Following are a few of them.
Renovation of your home
It proves costly to refurbish your old home with the help of a personal loan especially when you need to redo the interiors or the kitchen or various other corners of your home. In such situations, taking a loan on your existing property proves inexpensive.
Funding the cost of higher education
Education is a necessity in life and there is an increasing craze for foreign universities nowadays. The present generation of students wants to complete their higher education in foreign countries and for this they need funds. Education loans prove expensive in this regard. A property loan is ideal to meet your higher education cost at a lower interest rate and this minimizes the burden on your budget.
Expansion of business
Creating a new business or expanding an existing one is never easy as it involves a lot of expense. You will need a huge sum of money to meet the operational cost of your business, your infrastructural development, or various other requirements central to your business. For this, you can take a loan easily against your property at a comfortable tenure to pay back the loan. You can get tenure as long as 15 to 30 years to repay the amount. You can quickly check this fact with the help of a loan against property emi calculator offered by different lenders to know the detail of monthly repayment with interest rate against your loan and go ahead accordingly.
Holidaying purpose
People take time out for holidays from their busy schedules to unwind themselves. They take extended vacations in different locations to recharge themselves after they work tirelessly to improve their lives. Holidaying in exotic locations is a growing trend nowadays. These vacations tend to be very expensive and if you lack cash while preparing for your much-awaited vacation you can take the help of this property loan option. Again, a loan on property proves more affordable in this respect than a personal loan.
Paying back your credit card outstanding
If your credit card bills have been pending for months with the growing interest rates, the best way to settle this is with a property loan. It is a better idea to go for a personal loan when you have property lying in your name. A property loan will save you from the penalties on your credit card bills and at the same time will help you avoid the higher interest rate on a personal loan.
Information about loan against property emi calculator
You can get a complete picture of your property loan with this computing tool. Prior information on the interest rate on your loan will help you adjust the loan amount. While adjusting this EMI calculator you should remember certain things such as
- Your loan amount will depend on the current market value of your property. Higher the market value, the greater the loan amount. With some lenders, it covers about 60 percent while with some others it covers up to 80 percent.
- For a high-value loan, the repayment duration will also be higher. A longer repayment period for example 20 years means you will be paying interest for a long time. So sometimes borrowers take the help of an option called an ‘overdraft interest facility’ which allows them to withdraw money with a zero balance on a current account.
- As the loan will be approved based on collateral the interest rate will be lower than personal loans.
Concluding opinions
It is a common truth that what you desire in life is not always supported by your financial condition. To handle the highs and lows of your financial life a loan on property comes in handy as you can avail of it with less difficulty. If you own a registered property, you will never have to worry to meet your urgent financial requirements in life. This loan processing is faster as it is done online nowadays with minimum documentation.
