6 Folk Tales About Property Loan Which Need To Be Debunked Today!

ByFinway FSC

A loan against property (LAP) is a secured loan sanctioned when an asset is kept as a mortgage with the lender. This asset can be any property, an owned land, a house, or any commercial premises. To attain our financial needs, personal loans serve a great purpose. It allows you to leverage the assets you own. You can further use it as collateral. Now you can borrow money and use it for financial emergencies. Myths about LAP are doing rounds all over the country. Following are some misconceptions about loan against property in Delhi NCR that is 100% untrue:

6 Myths On Property Loans That Should Be Diminished!

  1. Only people with high salaries can apply for LAP: In most cases, people with a high income do not generally feel the need to avail of loans. In this case, too, it is just a common myth that one needs to have a high income to avail a loan against property. There is nothing to worry about as long as you convince the loan givers that you can quickly repay the loan.
  2. Short tenure period: This is a widespread belief that a LAP involves a low amount of tenure. This does not stand true as loans against property sometimes have assignments as high as 20 years. Hence there is ample time to repay the loan.
  3. Loans are only provided for residential property: This statement, like the others, holds no accuracy. Loans against property are provided for all types of lands, from residential to commercial to agricultural. One can avail of loans according to their preferences.
  4. High-interest rate: This is a common belief among people that loans against property have high-interest rates. This is untrue. The interest of such loans depends on many factors. These include the borrowed amount, time of tenure, kind of property, among others. Thus, different loan providers have different interest rates. The interest rates are flexible and comfortable, so one needn’t be scared.
  5. Pledged property cannot be availed: Another folk tale that people believe in blindly is that they cannot use the property they have mortgaged. This statement is not true at all. As long as the borrower has no defaults on the repayment, they can fully avail of the services of their property kept for a mortgage.
  6. The overall process is inconvenient: Many people who require a lap do not apply for it in fear. This is the fear that the process is time taking and troubling. This myth needs to be busted. Using for a lap is as easy as applying for a Lap. The process is swift and efficient. With the onset of the internet, most loan providers even offer an online application process. It allows easy access and function of the loaning process.

Conclusion

Thus, misconceptions about LAP should not inhibit a borrower from applying for a loan against their property. They can further avail the benefits without stressing out. Just by applying for a loan against land mortgage, one can get rid of many financial inconveniences.