With life’s uncertainties, you can face a financial crunch anytime. You could be living a decent life, and, suddenly, some necessity could force you to dig your pockets for funds. However, doing that can drain your savings and further put you at a financial risk. Thankfully, you can take loans. Loans help you finance your varied needs without exhausting your hard-earned savings. One such loan is a loan against property. Read on to know more about a loan against property and the needs it can fulfil.
What Is a Loan Against Property (LAP)?
A loan against property is a secured loan that you can avail by mortgaging your property. You can pledge your residential, industrial or commercial property to avail funds against it. The interest rates of LAP are low as compared to other unsecured loans. You can avail a LAP for up to 15 years.
Important Needs You Can Fulfil with a Loan Against Property in India
A wedding is one of the most beautiful moments of everyone’s life. Naturally, each one of us wishes to have the best wedding ceremony. However, weddings are an extravagant affair that consumes a significant amount of money. Often it is beyond one’s savings. A LAP can be used to finance your wedding functions. Be it for a venue, outfits or catering, you can get the best of everything with a loan against property.
Higher education is of utmost importance to be successful in this fast-paced life. Many people avail high-interest personal loans to pay for their children’s higher education while their property is being unused. Instead, you can pledge your property to avail a loan against it and arrange funds for higher education.
- Medical emergency
Medical issues always come unannounced. Hospital bills can empty your coffers, leaving you with almost no money. Instead, you can use a loan against property to pay your hospital bills. After all, what is more unfortunate than losing a loved one due to a lack of funds? A LAP can fulfil your medical needs and save lives.
Do you dream of being your own boss but do not have sufficient funds? A loan against property could help you. LAP is a handy tool that can help you start your own business without hassle. Many lenders provide LAP at easy terms and low-interest rates. You can always prepay the loan when you earn profits from your business.
Benefits of loan against property
- High loan amount
- Low-interest rates
- Easy application and approval
There is no end-use of a loan against property and so, you can use it to fulfil your various financial goals. However, if you use it for home renovation, repairs or extension, you can get tax benefits too. As per section 37(1) of the Income Tax Act, 1961, you can claim a tax deduction on interest repayment up to Rs 2 lakhs. So, check your affordability with a loan against property EMI calculator and fulfil your dreams today.