Applying for a loan can be a decision weighed down by options. Which bank do I take a loan from? What security do I give? How much EMI can I afford per month? Every person’s experience with loans tends to differ based on several factors. Perhaps one of the biggest questions is what security to give in. The answers to this question generally lies in the form of jewellery or land.
Contrary to what Bollywood movies have depicted, getting a loan against your home isn’t a bad idea. In fact the dramatic scenes of being thrown out of the house for not being able to pay back doesn’t have to be your story. For one, you will make a more informed decision before you decide to take a loan against property. Here are 5 reasons why you’ll want to opt for this:
1. Slashed interest rates: Interest rates hugely influence the amount you need to pay back to the bank. This type of security gives you the benefit of a lower interest rate, which obviously would be something everyone wants.
2. Ease of loan approval: Being termed as secured loans, you don’t have to face the reluctance of banks and loans are sanctioned with ease.
3. Longer payback tenure: In comparison to personal loans, loans against your property can go as long as 15 years. This in turn gives you more time to be able to repay it and enjoy the reason you took this loan for in the first place.
4. Lower EMI: Majority of people would like to opt for EMI options that are easier on their pockets and when you take a loan against property you have the advantage of paying back a lower EMI as the payback tenure is longer.
5. Little to no prepayment charges: When it comes to this particular option you can make prepayments which again are generally not charged for by lenders.
With an option like this, realizing your dreams through the power of loans can become your reality too and not just your neighbours. Whether it’s an educational course overseas, a wedding in the family, starting your own business or maybe even going on a dream vacation, you have a chance to say yes to them.