Noteworthy Features of Loan against Property
The minimum amount that can be from Loan against property is Rs 2 lakh and there is no maximum limit on the same.
The borrower is at liberty to choose from fixed or floating rate of interest according to oneâ€™s requirements. There is flexibility in choosing the interest.
The tenure of the repayment offered by various banks on LAP is normally up to 10 to15 years. When the cash flow is not regular and active this favourable feature of loan proves to be very lucrative.
The rate of interest on LAP is generally lower as compared to personal loan. The loan ranges from 11 % - 14 %.
Availing this type of loan will help the borrower get greater funds to meet his important requirements, without losing the ownership. By taking LAP, one can make the best possible use of his/her own property.
A couple of banks offer an OD facility as an added feature to LAP.