In present times, personal loans are the feasible option to acquire a quick cash flow. But the downside of acquiring these loans is the high rate of interest on those loans. This puts your plans on the back burner. The smarter and alternate way is to opt for Loan Against Property (LAP). LAP is categorised as a loan that is given to the borrower with a security cover of the borrower releasing the property rights to the bank.
There may be financial crunch situations where you may need a cashflow. It becomes essential that we are well prepared or aware of the options available at hand. The initial means could be borrowing from friends and family or possibly selling off some valuable possessions to meet the needs. But you could also use loan against mutual fund to pull you out of financial doldrums. Yes, you can lease your shares to acquire a decent loan.
Remember that taking a loan against a commercial asset, the Loan to Value offer will always be lower to the rates offered when leasing out residential property. The reason for that being that banks firmly believe that the urge to save residential property is always a priority than saving a commercial property.
The major advantage of LAP is its secured loan process. The tenure for LAP is a good 15 years, which gives the borrower healthy time to settle off debts. The loan eligibility is directly proportionate to the property’s worth. The rate of interest is low and falls into a bracket of 12 to 16%. This results in the EMI turning cheaper.
If you wish to take a LAP or loan against bonds, or for that matter loan against shares in India, you need to get in touch with a financial professional like JMFL. The team of experts are proficient in guiding you through a varied of services. Be it Investment Banking, Commodity Sales and Trading, Equity, Debt, Wealth Management, Portfolio Management Services, Asset Management, Alternative Asset Management, Financing and Lending, Housing Finance and Distressed Asset Managemen