1.Access to Funds: A loan against property allows you to access a large amount of funds, typically up to 60-80% of the property’s market value, depending on the lender’s policies.
2.Flexible Repayment: Loans against property generally have flexible repayment options, with longer loan tenures compared to other types of loans. This can help you manage your finances better.
3.Lower Interest Rates: Loans against property typically have lower interest rates compared to personal loans or credit card loans, making them a more cost-effective borrowing option.
4.Collateral Security: The property you own serves as collateral, which can provide you with better loan terms and a higher loan amount compared to unsecured loans.
5.Debt Consolidation: You can use a loan against property to consolidate multiple high-interest debts, such as credit card balances or personal loans, into a single, more manageable loan with a lower interest rate.
6.Home Renovation or Expansion: A loan against property can be used to finance home renovations, extensions, or improvements, allowing you to enhance the value of your property.