Why take loan against property in Delhi and what are its advantages

 Earlier, people in India were very skeptical about taking loans but in the recent years, due to the rise of the NBFCs (Non Banking Financial Companies), this myth has been dispelled. There are many people nowadays who are taking loan against property in Delhi and other metro cities in India to scale their business, or as personal loan.

Loan against property in Delhi is a secured mode of transaction wherein you pledge a certain piece or whole of your property as collateral to the lending authority in order to get the loan. Since this loan is secured, you get low interest rates and the verification process is lenient as well.

Usually, most banks are allowed to offer up to 80% of the property’s market value as the loan, but if you go to the NBFCs, you can get a higher percentage. However, you should keep in mind that no lending institution would give you a 100% of the property’s value.

Why take loan against property?

By taking a loan against property, you can accomplish a myriad of tasks, including higher education of children, marriage arrangements or financing a home or a car. But besides personal uses, it has commercial utility as well. There are many businesses that use loan against property as a business loan in Delhi and other developed cities like it. A business can have a plethora of needs that it may satisfy with loan against property. For instance, the loan could be used for expansion, research and development, digital marketing and promotions etc.

Advantages of loan against property

Taking a loan against property has many advantages. Let us take a look at some of them.

Comparatively lower interest rates

Since a loan against property is a secured loan, the lending institution can afford to offer lower interest rates. This means that you would have to pay altogether lower EMIs and wouldn’t have to suffer a setback on your budget because of the loan.

Long repayment tenure

Generally speaking, loan against property has a longer tenure for repayment. This results in lower EMIs and makes repaying the loan easier and hassle-free. A short term loan is always a risk as you never know, if you face a financial crisis in the future, things could go really south really quickly.

You maintain ownership of property

Unlike selling the property for money, which leads to the loss of ownership, taking a loan against that property lets you maintain your ownership, lets you use that property, while also making money off of it. Of course, you must be careful not to default or there might be hassles in the future.