123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Why Should Why Think Before Taking A Loan Against Property

Profile Picture
By Author: Finway Capital
Total Articles: 122
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

When you are giving a property as a collateral it is vital that everything is checked twice before you finally take a loan. Let us understand the disadvantages that may be associated with such a loan.

Loan amount is not specified: When a certain sum of money is needed, then you must not opt for Loan Against Property. The reason is that here the loan amount given will be according to the estimated to price of the property. This may or may not suffice your requirement. So even after mortgaging a property the loan amount you needed is not what you get, the purpose becomes futile. In such a case a personal loan can be taken. This will have more paper work but you will know the amount you are getting as loan.

Risk of losing the property: When a loan is taken after mortgaging the property, the tenure of the loan is rather long. But at times even after that the borrower is unable to repay the loan on time. This leads to an auction of the property. This is done by the bank to recover the loan amount. Therefore, if your income is not consistent and you have taken this loan as a Business Loan in Delhi, then be cautious. Manage the finances well so you are able to repay it, else, opt for another loan wherein at least the property will be safe.

Lower value of the property: The bank usually estimates the property lower than its actual one. This would mean that you will get an amount for loan that is much lower. This is done as the banks estimate the value of the property at a price lower than the usual market price.

Taking a Loan Against Property, or taking a personal loan, both has its set of pros and cons. One must be very judicious either an entrepreneur or a service man while opting for loans. In both cases there should be a regular and a consistent income. When a borrower does not have a good credit score and due to which cannot apply for Business Loan in Delhi, then it is difficult to get a personal loan. This loan is meant for such people, however, the constant of having a consistent income along with meticulous planning remains.

Total Views: 37Word Count: 389See All articles From Author

Add Comment

Investing / Finance Articles

1. Struggle In Getting Emergency Loan? Apply It Here
Author: Fayeem

2. Raise Capital For Your Business With Loan Against Property
Author: Fayeem

3. Know The Best Business And Home Loan Deals.
Author: Fayeem

4. Know About All Type Of Loans Here
Author: Fayeem

5. Instant Personal Loan- Points To Remember Before You Apply
Author: Fayeem

6. How To Get Complete Assurance Of Services Before You Get A Loan?
Author: Fayeem

7. Get The Best Business And Home Loan In Delhi.
Author: Fayeem

8. Get Instant Loans On Your House At The Time Of Emergency
Author: Fayeem

9. Get A Home Loan In Delhi And Make Dream Come True
Author: Fayeem

10. Features To Check Before You Get Loan On Your Property
Author: Fayeem

11. Are You Eligible For Low-interest Loans In Delhi?
Author: Fayeem

12. Us Tax Returns Benefits And Future In Financial Progress
Author: Berkley Josh

13. Apply Personal Loan Online
Author: quikkloan

14. Know About The Eligibility For Pmay Scheme
Author: Rudra Raghavan

15. Godrej Tranquil- A Place To Call A Home.
Author: Pooja Agrawal

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