123ArticleOnline Logo
Welcome to 123ArticleOnline.com!

ALL >> Investing---Finance >> View Article

Interesting Facts About Loan Against Property Interest Rates

By Author: Aishwarya Mahurkar
Total Articles: 291

A loan against property is a loan which is taken from the bank with the borrower’s property provided as security until the loan has been repaid. If the borrower fails to repay the loan, the bank can take ownership of the property. The loan amount provided however to the borrower is only forty to sixty percent of the actual value of the property. This loan is easily obtainable as compared to other types of loans as security is provided. The process of applying and getting one’s loan against property approved is quicker compared to the procedure of a home loan. A loan against property can be utilized for a variety of purposes. A borrower can use a loan against property to expand their business, afford a holiday abroad, medical treatments and fund your child’s studies abroad. The tenure of such a loan can go up to 15 years. The loan against property interest rates tend to vary based on the bank the applicant selects. There are however some facts that make it different from other loans:

• The reason why loan against property interest rates are low is because it is a secured loan. The borrower provides the bank with the ownership papers of their property as security until the loan has been prepaid.

• The loan against property interest rates are some of the lowest of all the retail loans available for applicants in the market.


• The burden on the borrower each month to repay the EMI is much lesser since the interest rate charged is affordable.

• Though the loan against property interest rates is lower, the loan has to be long term since the tenure varies between 5 to 15 years. An applicant cannot opt for this loan for a short term period.


• Even though the loan against property interest rates is affordable, it is extremely important for the borrower to plan in advance on how they plan to repay the EMI each month.

• There is a risk with such a loan as the borrower is using their own property as security. Failure to repay the loan can cause the borrower to lose his property. Defaults in the loan repayment process can lead to the bank selling the property to recover the loan amount.

A loan against property is an ideal loan to help fund any financial requirements of the applicant. With a low interest rate and long term tenure, the repayment process is more affordable. As long as the borrower plans his finances in advance and makes his payments consistently, he can easily repay the loan.

Author Bio :

Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the different types of home loan products such as loan against property, Home improvement / renovation loan, loan against property interest rates.

Total Views: 95Word Count: 471See All articles From Author

Investing / Finance Articles

1. All You Want To Know About An Nro Account
Author: Samantha Kennedy

2. Why You Must Outsource Accounting Services Sans Any Doubt And Fear
Author: Lee Bruce

3. Why Door To Door Loans Had Been So Popular Till Now?
Author: David Brown

4. The Latest Trend In Door To Door Loans.
Author: David Brown

5. The Ultimate Revelation Of Door To Door Loans.
Author: David Brown

6. Growing Your Company With Invoice Factoring Funding
Author: Nova Cash Flow Finance

7. All Eyes On The Following Intraday Cash Strategies
Author: robin scott

8. Choosing Chartered Accountancy Profession With Number Of Possibilities
Author: Austin K Loader

9. Greater Noida Triumphs Over Gurgaon To Invite With The Finest Golfing Luxury Living – The Hemisphere
Author: The Hemisphere

10. Towards Benchmarking- Efforts Made Towards Improving Transport Efficiency
Author: Dylan Munro

11. Tips For Ambitious Property Investors
Author: Charlie

12. Need Of The Hour For Investors - Equity Research Reports
Author: Aastha Kapoor

13. Critical Guidelines For Availing Short Term Loans In United Kingdom
Author: David Brown

14. How Do Banks Benefit From An Asset Reconstruction Company In India?
Author: Nidan Narkhade

15. Long Haul Auto Loan: Understand The Pros And Cons Before Saying Yes
Author: David Brown

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: