For all those who are in need of immediate cash but don’t have sufficient CIBIL score to apply for a personal loan, a loan against property is the best option you can resort to. Considering the perks available with the latter type of credit scheme, it can be regarded as a secured personal loan scheme. In other words, a mortgage loan, except for a home loan, can be regarded as a secured personal loan. So, if your CIBIL score is in a poor state apply for a Loan Against Property, you can still do away with your immediate cash needs without additional financial support.
Advantages of Mortgage Loan over another equivalent unsecured scheme;
The Loan Against Property Interest Rates is considerably low due to low risk involved with the loan. The lender always has the option to sell your property in order to retrieve their money in case you turn into an NPA.
The repayment tenor available is way longer than any other unsecured loan scheme. You can get upto 20 years for repayment of your loan.
Types of Loan against Property:
Loan Against Residential Property: Loan offered against a residential property. You can mortgage your self-occupied house or your ancestral home. You can even use your 'let-out' as collateral.
Loan Against Commercial Property: Credit offered against commercial property owned by a business.
Loan Against an Industrial Property: Loan against industrial property allows potential borrowers to acquire a loan from the institution by extending the industrial property as collateral.
Lease Rental Discounting: This secured loan is offered to those borrowers who derive a stable and assured income by renting their spaces.
Also, compare different options before applying for any particular scheme. For additional read: Different Types of Loan Against Property