Loans against property may be availed by salaried as well as self-employed people. Self-Employed persons or businesspersons take such a loan to meet cash flow needs, since such a collateral helps raised a large sum of money for lower rates. Salaried individuals may use such a loan to meet large expenses such as a wedding in the family, or education of a child.
Being a secured loan, such an arrangement may unlock the value of your property to put to use the money for various personal as well as business purposes, which could vary from expanding business to sudden and emergency expenses. Easy availability makes this product popular, as some lenders are ready lend you up to 70 percent of your property value. The terms and conditions offered in terms of interest and repayment are also better compared to other loans. Additionally, you can avail tax benefits on this type of loan, and if you plan to pay back the loan earlier than the loan tenure, some lenders don't even charge you a prepayment penalty.