Which to Choose - Personal Loan or Loan Against Property?
Two types of loans are available to you. A loan against property is secured, and a personal loan is unsecured. Compare these two loans before choosing any one of them.
Personal Loan vs Loan Against Property
Comparing Personal Loan and Loan Against Property
Loan Amount
#1
A loan against your property means you can borrow a maximum amount of 65% of your property value. And in a personal loan, your loan amount depends on your income.
Applicable Rate of Interest
#2
A loan against property means giving your property as collateral to the loan provider. So the interest rate is comparatively less than that of a personal loan.
Repayment Period
#3
Housing finance companies provide a maximum tenure of 15 years for a loan against your property. And in a personal loan, the tenure is at most five years.
EMI Amount
#4
A loan against property EMI is more affordable than a personal loan EMI due to its flexible tenure option.
Loan against property is secured has a lower EMI option, longer tenure and competitive interest rates. Between a personal loan and a loan against property, the latter should be your preferred choice.