Fulfill Your Dream By Availing a Property Loan for Your Expenditures

If you have a property and reside in it, you don't get any monetary value out of it unless you sell it. Even for properties that you own but don't occupy, you may only get a fixed and limited income from them.

Why not get some quick cash out of your property to pay for things you find difficult to pay for? A loan against property is an easy way of getting fast cash to ensure that you can do more with your money.

Benefits of a Loan Against Property

If you are smart about how you move, you can get the best out of your property by availing a loan using it as collateral. Here are the benefits you can enjoy:

1. Get a Large Loan Amount

The current value of your property will be several lakhs and perhaps even in crores of rupees. Considering that you can get a loan sanctioned for up to 90% of the value of your property, you can get a considerable loan amount if you need it.

Some of the high-value expenditures that you can use the loan amount for are:

  • Higher education for your children or even for yourself

  • Health emergencies

  • Business expansion

  • Home improvement

  • Wedding expenses

  • Travel abroad

2. Long Tenures Are Possible

Unlike an unsecured personal loan, this is a secured loan, your collateral being your property. You can get a loan tenure as long as 20 years, which brings down your monthly EMI for repayment considerably.

3. Low-Interest Rate

This type of loan is secured, which reduces the risk to the lender considerably. In case of default, the recovery of the loan amount is guaranteed, so the lender fixes a lower loan against the property interest rate.

4. Quick and Hassle-Free Process

With an unsecured loan, there is much documentation and verification required. However, with a loan against property (and other such secured loans), due to the reduced risk to the lender, it gets sanctioned faster through decreased paperwork and fewer questions.

5. Debt Consolidation

If you have numerous liabilities with different interest rates and equated monthly instalments (EMIs), you can avail yourself of this type of loan. You can transfer all your borrowings into this single, low-interest loan.

6. Continued Access to Your Property

With a loan against property, you can still enjoy your residential or commercial property while using it for collateral. It means that you can continue to live in it or lease it out as normal.

7. Reduced or Nil Prepayment Penalty

According to the Reserve Bank of India (RBI) mandates, if you have a floating rate of interest, you will not be charged a penalty if you want to make a prepayment or in case of foreclosure. This gives you a reduced or zero prepayment penalty for a loan against property.

8. Income Tax Benefits

According to Section 37(1) of the Income Tax Act, 1961, you are exempt from paying income tax on interest payments. If you utilize the loan to purchase a residential property, Section 24(B) of the Income Tax Act, 1961 gives you income tax relief.

However, terms and conditions apply, such as you cannot avail of this provision if you use your loan for paying for things like vacations, travel, education, and weddings. So you would do well to check your eligibility for income tax exemption.


A loan against your property can give you multiple benefits with a lower loan against the property rate. It is among the quickest and easiest ways to get large amounts of money. However, read the terms and conditions carefully before you sign on the dotted line.


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