One of the most critical aspects of financial planning is saving. However, you may come across a scenario where you experience a rough patch and require some financial assistance to tide over troubled times. In case you want to borrow for long-term financial aid, then you can resort to obtaining a loan against property by keeping your house as a mortgage. The primary reason to keep your home mortgage is LAP rates are lower compared to any other investment.
You could take a property loan not just to cover your financial crisis but for other purposes as well such as a wedding, vacation, child’s education, and so on. The other unexpected ways a loan against property comes handy are:
Pay credit card debt: One of the worst situations to be in is the vicious cycle of credit card debt. If your credit card bills are out of control, it is better to take a property mortgage loan. The credit card interest rates are sky high, and you will fall in the vicious trap of debt repayment of credit card bills in case you do not pay it all at once. It is smart to repay the LAP in monthly instalments than paying the exorbitant interest rates which credit cards charge. These interest rates usually range from 24 to 46 per cent.
Finance higher education: Quality education is not cheap. Even if you take an education loan amount beyond INR 4 lakh, you have to provide collateral such as your property. Many parents also send their child abroad for higher education by merely taking a loan against property as education loans involve plenty of hassles. You can resort to LAP to meet your children’s or your educational needs easily today.
Establish new business: If you want to restructure or grow your business, you require a substantial amount of capital. You can opt to mortgage your property to cover the essential costs needed to restructure the company, meet the operational need, and hire human resources. The best part about taking up such a loan you can repay it within 15 years. Interest rates are also low since they are secured loans. If you have some entrepreneurial goals, you can invest in LAP. If you have a business idea, use this way out. However, the only concern here is the repayment factor. Hence, you must have a proper financial plan that supports your new business ideas and goals.
Fund dream vacation: Have you been planning an exotic vacation since forever but never managed to fulfil one owing to financial constraints? If you need a break, then get one by taking a property loan from a trusted lender. It is not a huge deal, as long as you know you can repay the amount within the specified duration. Since the interest rates are lower, the EMIs are lower as well. Hence, LAP becomes the ideal option to fulfil your vacation goals.
LAP has emerged as a top choice amongst users as it caters to a variety of personal and family needs. LAP is a no frill credit, which is another reason for its demand. What also sets the property mortgage loan apart is its interest rates that are lower than personal loans.