This is a process, wherein a secured loan is provided against the mortgage of the property with a lesser interest and longer repayment option. The loan against property can be used for various purposes such as a business expansion, a wedding, investment in a commercial property or any other greater priority.
Sl | Feature | Advantages | Disadvantages |
---|---|---|---|
1 | Secured Loan | Competitive Rate of Interest | Property Documents should be with approvals |
2 | Obligation | Repayment can be extended to 15 years. | Stricter Income Norms |
3 | Interest | Lower EMI compared to other loans | Valuation will be done less than market value |
4 | Maturity | ||
5 | Restrictive Covenants |