Get Ease Of Transfer With Property Loan

Loan Against Property V/S Gold Loan

What is a Loan Against Property?

A loan against property is a type of secured credit that one can avail by collateralising selfowned residential/commercial property. Since this mortgage loan comes without any end-use restriction, one can utilise the availed funds for various purposes like buying new properties, debt consolidation, funding trips or studies abroad, among several others. However, lenders sanction this fund only after assessing the valuation of the property pledged and running proper eligibility criteria check.

What is a Gold Loan?

It is also a kind of secured loan that individuals can avail by pledging the gold to a selected lender. However, to avail of this fund, individuals need to pledge select gold items like ornaments, jewellery, etc. Just like a loan against property, it also does not come with a restriction on end-use. Though such specifications of a loan against property seem similar to that of a gold loan, they have some fundamental differences.

Thus, one needs to go for a gold loan vs loan against property comparison to make an informed decision.

Difference Between Loan Against a Property and Gold Loan

â—? Loan Amount When it comes to loan value, select financial institutions offer an amount of up to Rs.3.5 crore to eligible candidates. It is also the loan against property eligibility parameters that help borrowers to negotiate for a better property loan interest rate. â—? Repayment Tenure Generally, the repayment tenures for loans against property come with an extended period of up to 20 years. On the other hand, a gold loan comes typically with a shorter tenure of up to 1 year.

â—? Pre-approved Offer These offers make the loan application process straightforward and less timeconsuming. Besides loans against property, these offers are also available on a range of financial products such as home loans. All you need to do is enter your name and contact number to check your pre-approved offer.

Conclusion While both loan against property and gold loans come with their sets of pros and cons, prospective borrowers need to weigh their suitability in terms of individual requirements. Nevertheless, comparing the property loan interest rate with that of a gold loan is indispensable to ensuring affordable financing.