A loan is your way out during times when you’re low on cash. However, with the vast variety of loans available out there, it’s not always easy to find and choose the best option. If you’re looking to decide between a personal loan and a loan against property, you need to know a few things about both these forms of credit before you make a decision.
Loan Against Property vs. Personal Loan
The difference between loans against property and personal loans is quite fundamental. A personal loan is unsecured, meaning that you don’t need to put own collateral to take one. A loan against mortgage, on the other hand, is secured with the property that you pledge to the lender. In order to pick the right one, you need to find out what your requirements are.
If you’re seeking a lower loan amount that you can quickly pay back within a short duration of time, then a personal loan may prove to be a better choice. Personal loans are quite easy to obtain if you have a relatively clean credit history. But keep in mind that their interest rates are usually quite high, ranging from 14% to 21%; that’s why you need to pay back your loan as quickly as possible. It’s a good idea to mortgage your house only when you need a higher loan amount, for a longer duration of time.
Bajaj Finserv offers both personal loans and loans against property at attractive interest rates. This company also provides a part prepayment facility, and lets you foreclose your loan with absolutely no additional charges.
Consider the Interest Rates
A loan against property is known be one of the cheapest retail loans after home loans. A personal loan, however, is definitely not as cheap. While loan against property interest rates range from 12% to 16%, personal loan interest rates usually fluctuate between 16% and 21%. It’s important to choose an interest rate that’s commensurate with your ability to repay.
Check the Loan Amount
The personal loan amount that’s sanctioned to you depends mainly on your level of income, along with your ability to repay. The loan against property amount, however, is dependent on the value of the property you pledge. So it’s very likely that you’ll be offered different amounts when you apply for both these kinds of loans. Choose a loan amount that best suits your needs.
If you’re looking to take a personal loan, then consider one from Bajaj Finserv, which offers loans up to INR 25 lakh. Depending upon your eligibility, your loan application will be approved within 5 minutes when you submit it online. What’s more, if your loan is approved, your money will be disbursed directly to your account in 72 hours. You can apply online for personal loan at Bajaj Finserv anytime you want to.
Bajaj Finserv also enables you to apply online for loan against property with online account access.
Whether it’s for a personal loan or a loan against property, it’s important to select a lender who you can trust. Consider the alluring options provided by Bajaj Finserv.