Which Is Better Loan Against Property Or Personal Loan-Banner_WC
Procuring Funds During Financial Emergency_WC
Unforeseen circumstances can catch you off-guard and arranging for funds during such times can be tedious. However, there are plenty of financing options that can help mitigate your financial crisis.
The problem arises when you make a hasty decision during a financial emergency without considering all the options available. Most people consider a personal loan while tackling financial emergencies. A Loan Against Property, however, is a much better option as it allows you to borrow the amount of your choice and repay over a flexible tenor, at a feasible interest rate . To understand more about the Loan Against Property benefits, read on.
A Loan Against Property is a financing option wherein your lender sanctions a loan after keeping your property as security. The property papers stay with the lender until you have completely repaid the loan amount with the applicable interest.
In terms of interest rate, a Loan Against Property comes at a more competitive rate than a personal loan. Above that, the funds availed can be used to meet all kinds of expenses.
A personal loan is an unsecured loan that is sanctioned without collateral. Much like a Loan Against Property, borrowers can use the funds to meet any kind of expense. However, given its unsecured nature, lenders charge a higher rate of interest on personal loans.
Sizeable FundsA Loan Against Property is a secured loan, which minimizes the risk factor of your loan. Therefore, lenders do not hesitate while sanctioning big loan amounts, especially when the property in question is in good condition and at a prime location.
Competitive Interest RatesThe Bajaj Housing Finance Loan Against Property comes at an interest rate of 9.50%* p.a. for eligible salaried and professional applicants. Whereas, the interest rate on personal loans range from 10% to 25%.
Flexible TenorsLoans Against Property generally involve a sizeable loan amount with a long tenor. Though the tenor varies from lender to lender, it often goes up to 18 years. In the case of personal loans, most lenders provide tenors not more than 5 years.
Additional ChargesLastly, the processing fee for personal loans is always more than Loans Against Property processing fees. For Loans Against Property, most lenders charge about 7%* of the loan amount as the processing fee. However, the processing fee for personal loans is significantly higher.
Similarly, personal loans also draw considerable part pre-payment charges. Whereas for Loans Against, lenders do not charge part pre-payment charges for individuals with floating rates.
Now that you know where a Loan Against Property stands in comparison to a personal loan, consider applying for one from Bajaj Housing Finance today if you are in urgent need of funds.
*Terms and conditions apply