When it comes to borrowing money, the options can seem endless. Two popular choices are Personal Loans and Loans Against Property (LAP). While Personal Loans are often the go-to for many, a Loan Against Property offers several distinct advantages. Here’s a look at the top seven reasons why opting for a Loan Against Property might be the better choice for your financial needs.

1. Lower Interest Rates

One of the most significant advantages of a Loan Against Property is the lower interest rates compared to Personal Loans. Since LAP is a secured loan, backed by your property as collateral, lenders are more willing to offer competitive rates. This can lead to significant savings over the loan tenure.

2. Higher Loan Amount

With a Loan Against Property, you can access a much higher loan amount compared to a Personal Loan. The loan amount typically depends on the value of the property, which means you could secure funding that covers large expenses, such as business expansion or higher education.

3. Longer Repayment Tenure

Loans Against Property usually come with longer repayment tenures, often extending up to 15-20 years. This extended period allows for smaller EMIs, making it easier to manage your monthly budget without straining your finances.

4. Flexible Usage

A Loan Against Property offers flexibility in terms of usage. Whether you need funds for business purposes, education, medical emergencies, or even a vacation, the choice is yours. The lender doesn’t impose restrictions on how you use the loan amount, providing you with the freedom to meet various financial goals.

5. Tax Benefits

One of the lesser-known benefits of a Loan Against Property is the potential for tax deductions. If the loan is used for business purposes or to purchase a new home, you may be eligible for tax deductions on the interest paid, under sections 37(1) and 24(b) of the Income Tax Act, respectively.

6. Easier Approval Process

Since Loans Against Property are secured by collateral, lenders view them as less risky. This often results in a quicker and smoother approval process compared to unsecured Personal Loans, where lenders scrutinize your creditworthiness more stringently.

7. Continued Use of Property

Even though your property is pledged as collateral for the loan, you retain ownership and can continue using it. This means you can live in or rent out the property, even as you benefit from the funds obtained through the loan.

Conclusion

While Personal Loans have their place, a Loan Against Property offers several compelling advantages, especially when you need a significant amount of money at a lower cost and with flexible terms. Whether you’re planning to expand your business, fund a major life event, or consolidate existing debts, a Loan Against Property could be the financial solution you’re looking for.

Contact Suvidha Finance today at +91 83970 44041 to explore how a Loan Against Property can work for you!