All you need to know about Loan against property
What is a loan against property?
When there is an urgent requirement for funds, the normal tendency is to apply for a personal loan from a financial institution such as a bank. Although a personal loan is easy to obtain, it is an unsecured loan extended at a much higher interest rate than secured loans and thus causing you to pay a higher EMI.
A good alternative to a personal loan is the loan against assets owned by you. Your assets such as gold, shares, insurance policies and property lie idle. Banks such as IDFC Bank open the doors for you to avail loans at reduced rates of interest by offering loans on your assets. One such is the loan against property (LAP) product.
IDFC Bank’s Loan against Property product is convenient and easy to obtain. It costs you less and offers you many benefits including tax benefits under different sections of the Income-tax Act.
Features of Loan against Property
The main features of Loan against Property include
You can choose the appropriate Loan against Property to suit your individual needs.
Two Types of Loan against Property
There are two types of LAP - LAP Simple, LAP Short Sweet. The details of the two variants are as follows.
This product is quite easy to obtain and comprises features such as
This is a straightforward Loan against Property product you can avail without much difficulty. It is useful for people who need funds quickly and at a lower interest rate. It is also useful for people to utilize their idle property asset to acquire other assets. It is easy to apply for loan against property with IDFC Bank’s simple application process.
LAP Short Sweet
This is a unique product from IDFC Bank. Loan against Property Short Sweet allows you to leverage your idle asset to use loan amount generated from the property to park the amount in a current or savings account with IDFC Bank. This product offers multiple benefits akin to the ones enjoyed by savings or current accounts. The salient features of this product are
The loan against property product is excellent for people with assets which are not in use.
A loan against property is a secured loan and hence easy to obtain with few formalities such as KYC documentation and lodging of property documents. You must evaluate all the pros and cons of taking a LAP because if you are unable to repay the loan there are chances of losing your property. Thus, it is imperative that your income must be high enough to service the loan.