A loan against property is a great way to get access to large amounts of funds to meet any of your urgent needs. However, it’s a personal loan that most people turn to when they find themselves in need of funds.
Though personal loan will provide you the funds you need to cover things like a child’s marriage, further education plans, your plan to start a new business, expand your existing business, etc. there are several reasons why taking a loan against your property will be an advantageous decision in these circumstances. This article will highlight 3 of these reasons so you can make an informed decision between the two.
1. The amount of funding on offer.
With a personal loan, most banks will normally provide 2 or 3 times the applicant’s annual income. This may seem like a lot but in comparison to the loan amount provided by a loan against property, it is still quired less. This is because, with a loan against your property, you can avail as much as 60 or 70 percent of your property’s value as the loan amount. Given today’s property values, this can work up to a sizeable amount.
2. The interest rates of a loan against property.
The cost of the funding is another important factor when deciding between the two lending options. With a personal loan, you’d have to put up with exuberant rates ranging between 16 and 22 percent per annum. These are rates are really high in comparison to those of a loan against your property that most lenders offer with interest rates ranging between 9.50 and 11.60 percent per annum. Such low-interest rates will help you save loads of money over the tenure of your loan as compared to a personal loan.
3. The tenures of the loan.
The tenure of the lending instrument you choose plays an important role in deciding just how easy to strenuous your repayment schedule will be. Longer tenures make for smaller EMI amounts and longer tenures make for better savings at the cost of much higher EMIs. However, with a long tenure, you can always cut short the tenure of the loan by making a prepayment as and when you are financially able to do so.
Therefore, it makes much more sense to go with a loan against property as it comes with tenures as long as 15 years. This is a good 60 months more than a most personal loan that comes with tenures of 10 years. The extra 60 months to repay the loan make it much easier to pay back the loan.
So there you have it, three major reasons why a loan against property makes much more sense than a personal loan when in urgent need of funds. If you are still doubtful, you should consult a financial expert to see which one is better suited for you.
Though personal loan will provide you the funds you need to cover things like a child’s marriage, further education plans, your plan to start a new business, expand your existing business, etc. there are several reasons why taking a loan against your property will be an advantageous decision in these circumstances. This article will highlight 3 of these reasons so you can make an informed decision between the two.
1. The amount of funding on offer.
With a personal loan, most banks will normally provide 2 or 3 times the applicant’s annual income. This may seem like a lot but in comparison to the loan amount provided by a loan against property, it is still quired less. This is because, with a loan against your property, you can avail as much as 60 or 70 percent of your property’s value as the loan amount. Given today’s property values, this can work up to a sizeable amount.
2. The interest rates of a loan against property.
The cost of the funding is another important factor when deciding between the two lending options. With a personal loan, you’d have to put up with exuberant rates ranging between 16 and 22 percent per annum. These are rates are really high in comparison to those of a loan against your property that most lenders offer with interest rates ranging between 9.50 and 11.60 percent per annum. Such low-interest rates will help you save loads of money over the tenure of your loan as compared to a personal loan.
3. The tenures of the loan.
The tenure of the lending instrument you choose plays an important role in deciding just how easy to strenuous your repayment schedule will be. Longer tenures make for smaller EMI amounts and longer tenures make for better savings at the cost of much higher EMIs. However, with a long tenure, you can always cut short the tenure of the loan by making a prepayment as and when you are financially able to do so.
Therefore, it makes much more sense to go with a loan against property as it comes with tenures as long as 15 years. This is a good 60 months more than a most personal loan that comes with tenures of 10 years. The extra 60 months to repay the loan make it much easier to pay back the loan.
So there you have it, three major reasons why a loan against property makes much more sense than a personal loan when in urgent need of funds. If you are still doubtful, you should consult a financial expert to see which one is better suited for you.
We hope this article will help you make a well-informed decision between the two.
ReplyDeleteMy experience working with Mr Pedro ( A Loan Officer) was a pleasure. He was completely upfront about the costs and whether the deal made sense financially. In fact, when I explained my situation, he advised me not to refinance unless the current terms improved even though it cost him business. When he later contacted me about a better deal, I jumped at it because he had earned my trust. "Definitely made me feel confident that I was working with a great loan company / great business person who knew his worth of business lines.
I will advies anyone here looking for any kind of loan to contact Mr Pedro because he and his company helped me with a loan at the rate 2% which was very impressive.
I had Mr Pedro contact Office Email on .... pedroloanss@gmail.com