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March 2020
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If you need money, you can always take the support of a loan. But, which loan will be perfect for you can be only analysed if you know your needs, requirements, priorities, property availability, etc. There are two major loan divisions- one is a secured loan and the other is an unsecured loan. If you have some property, residential or commercial, you can keep that as mortgage with the bank or NBFC to get a loan sanction. This will be a Loan Against Property. But, if you do not have any property, asset or security, you can simply apply for an unsecured loan that is a Personal Loan. The specific difference between Loan Against Property and Personal Loan is its Interest Rate. The Loan Against Property Interest Rates are quite lower as compared to other loan available. In both cases, the potential lenders consider a borrower’s financial conditions and consequently their abilities to repay the loans. First, they clarify their perceptions concerning loans against property, and personal loans, check the eligibility of the applicant and verify all the documents and then offer a loan.
Factors that differentiate the loan against property or personal loan are: Time- The processing time of a personal loan much less as compared to loans against property, as the documentation procedure of a personal loan is much easier as compared to LAP. Personal loans are better suited for financial emergencies since they require only basic documentation. Tenor- The loan tenor is less for personal loan as compared to LAP. Laon against property can be a long-term loan. To know the other factors and find which one is the best, read: Which One to Choose Between Loan Against Property & Personal Loan?
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