Financial requirements that can be fulfilled with Loan Against Property
Posted: Sep 03, 2018
A Loan Against Property is a secured personal loan wherein you can mortgage your property to avail funds against its value. The loan is easily available, has low interest rates compared to personal loans and can offer you considerable funds because it is based on the value of the property mortgaged. Moreover, the loan, being a type of personal loan, can be used for different financial requirements. Do you know what they are?
Let’s find out –
- For business related needs
The loan can be used to finance any need of your business. Whether you want funds for the working capital requirements of your business, buying anasset or equipment, increasing production or expanding your business, you can avail a loan against property and get access to the required funds. Moreover, even if you are starting your own business, a loan against property is beneficial as it would be available easily and charge low interest rates.
- For medical emergencies
Medical contingencies might strike anytime and when they do they cause a financial strain because healthcare costs have gone through the roof. Meeting such healthcare costs might prove difficult and a loan against property would give the needed funds for sailing through the medical emergency and arranging for the best available treatment.
- For higher education of children
Education has also become expensive and if you want your child to pursue a good education from a reputed educational institute, you have to have substantial funds ready at your disposal. These funds can be arranged through a loan against property. The loan would not only pay for the course fee but also for other ancillary costs associated with your child’s higher education like accommodation fee (if hostel stay is required), tuition fee for extra coaching classes, equipment fee for computers and other equipment required for education, etc.
- For taking a vacation
A vacation becomes very important to take a break from the humdrum of daily existence. Moreover, visiting international destinations is a dream which many of you have. However, the expenses involved in such foreign vacations are a hindrance in realising your dream. If you want to turn your dreams into reality and want funds for a foreign trip you can use a loan against property. The loan would fund your trip easily and would allow you to plan a luxurious getaway.
- For furnishing your home
If renovation or furnishing your home is in your mind, you can avail a loan against property and do the needful. The costs incurred in home renovations, interior designing, home improvements and alterations can be financed using a loan against property. You can mortgage your home which needs furnishing, avail funds and then get your house redecorated or furnished with the loan you availed against its value.
- For any other personal needs
Besides the above-mentioned personal needs, any other needs which require funds can be met with a loan against property. So, if you want to plan a wedding for yourself or your children, the loan comes in handy. If you want to purchase electronic appliances for your home, look for a loan against property. The list is endless.
So, whatever be your financial need, rest assured that a loan against property would deal with it. Just mortgage your property and avail funds and you can use those funds for your personal or business needs. As simple as that!
Tushar Sharma is a financial advisor with an experience of more than 6 years. He has worked with top-most financial firms and has been a visiting faculty at many reputed institutes in India.