Personal Loan Or Loan Against Property: Which Is A Better Bet?
Money matters, and there’s probably has been more than one instance when you thought of applying for a loan if you haven’t already. A Personal
Money matters, and there’s probably has been more than one instance when you thought of applying for a loan if you haven’t already.
A Personal Loan is an easy solution to a financial crunch, but you also have the loan against property, which you can avail provided you own property. Which one should you opt for, then? In this article, we look at the pros and cons associated with both these types.
A Personal Loan is an unsecured loan that you can avail for any personal use, ranging from paying off your debts to fund your vacation abroad.
Personal Loan interest rate is one thing that you need to consider when applying for it. Bajaj Finserv, one of the most trustworthy NBFC in India offers one of the industry lowest interest rates when it comes to Personal Loans. When you avail a Personal Loan for Bajaj Finserv, the benefits are many:
Instant online approval
With everything going online, you no longer need to take time out of your busy schedule to apply for Bajaj Finserv’s loan and walk to their office. You can apply for Personal Loan online for instant approval. They offer an approval in 5 minutes and send their representative to collect your documents from a location suitable to you. The loan amount is disbursed within 72 hours.
Loan up to Rs.25 lakh
Whether you need money for funding your daughter’s education in an Ivy League university or buying your dream car, an amount so huge is sure to cover most of the expenses.
No matter what the loan amount is, you can repay it within a tenure of 24 – 60 months depending on your financial situation.
Whether you want to prepay with an idle fund or drawdown money, you can do so within the drop-line facility. Once you avail this facility, you can opt for prepayments without paying any penalties and saving in terms of interest.
Fees and charges
Bajaj Finserv charges a nominal percentage of the loan amount as the processing fee and there’s no other hidden Personal Loan fees and charges, making them transparent.
Loan Against Property (LAP)
A loan against property—as the name implies—is a secured loan, the collateral being your own property. The loan amount is a certain percentage of your property’s current market value, which is usually between 40% and 60%.
It can be a self-occupied property, a commercial property, a property that you’ve given on rent, or even a piece of land you own.
Just like a Personal Loan, there’s no restriction on how you can use this loan amount. The features and benefits (if any) depend on the financial institution you choose.
How to Choose?
When choosing between the two, here are two parameters you need to consider:
- Processing Time: No financial institution in India can beat Bajaj Finserv’s 72-hour processing and disbursement window. When it comes to LAP, the processing time is more as the lending institution needs to verify the property documents and the entire process can take anywhere from 15 – 30 days.
- Interest Rate: This is lower in the case of a secured loan. In India, this interest rate lies between 11 – 15%. Bajaj Finserv offers interest rate on Personal Loan at 11.99% which is the industry lowest, making this lower than lending rates of LAPs as well, and ensuring more savings.
These are only some of the reasons why Bajaj Finserv Personal Loans are the most popular, and why you should opt for them.