Loan against property or mortgage loan is a smart way to liquify your fixed assets. Being a secured loan in nature it is available at lower interest compared to an unsecured loan. Lower interest means lower repayments which help you to pay off the loan easily.
Leading NBFCs and financial institutions offer higher loan amount and Loan Against Property Interest Rate with affordable rates and flexible loan tenure on mortgage loan. They offer two types of interest rates -
Fixed rate - which stays fixed throughout the loan tenure.
Floating rate - which fluctuates during the loan tenure.
Mortgage loans on fixed rates are recommended as they offer the following benefits.
Since the rate of interest does not not change you can plan a fixed repayment amount at the start of the loan. This helps you to plan your finances better.
You do not have to worry about rising interest rates as you can continue to pay your loan at the lower fixed rate decided at the start of the repayment tenure.
NBFCs offer the Flexi Hybrid feature. It is a unique facility according to which you can withdraw as per your needs from the loan sanctioned. Interest is charged on these daily withdrawals which helps to lower the EMI by up to 45%.
You can apply and manage the loan online from anywhere anytime.
In some cases, you are required to make regular monthly instalments towards the loan acquired. On failing to pay up the loan the lender has the right to acquire your collateral/ property.
While in others, you do not have to transfer the ownership of your collateral/ property to the lender. You are still required to pay up the loan in full and failure to do so can lead to your property being seized even if it's not been transferred to the lender’s name.
Also Read: Benefits of Low Interest Rates in Mortgages Loan