Tag: Gold Loan

You can use the financial support banks lend for almost anything from international travel to a medical emergency. So, there are several kinds of resources that you may have that come in handy while taking the loan for generic financial requirements. One of the resources is loan. However, it is important to know the purpose of taking a loan. You need to compare factors like interest rates, eligibility criteria, processing fees, prepayment penalties, etc. before applying for any one of these emergency loans. Many of the loans are easily available, which is basically divided into two types: secured and unsecured loans. The most common and popular secured loan is Gold Loan.

Gold Loan:

This type of loan against gold uses it as the collateral deposit, which needs to be kept with the bank in order to obtain a loan. This loan has lower interest rates but the risks are extremely high. In case a default occurs, you could risk the loss of ownership of the gold you have. However, the gold loan is the most favorable emergency loan in India.
As most Indians traditionally and culturally keep a lot of gold for various occasions like wedding gifts and investments. An emergency loan can be processed as the loan against idle gold. Most leading banks like provide gold loans for excellent interest rates that range between 12 – 16%. You can use gold to secure an emergency loan based on (Loan to value) LTV ratio. This may be higher than the other type of loans; however this proves to be very beneficial when a high amount of loan is needed.

Personal Loan:
In the personal loan, you need not pledge any security or collateral. Personal loans are easy to handle, fast and hassle free, thus proving to be an ideal option for emergency financial requirements. Since it doesnt require any collateral, one can get a personal loan as easily as clicking a button.

Compared to gold loan, personal loan has higher interest rate. Though, most banks offer competitive rate between 14 to 25%. However, it is processed much faster. If you provide all the documents necessary, organizations like HDFC bank sanction and credit the loan amount in your account within 24 hours. The most important thing it can do is to help you escape the crisis or the need. So, whether you have time to opt for gold loan or have a good credit score for the personal loan, these financial products are designed to evade the financial need.

Owning a property is one of the most important assets in India. It can serve the wide spectrum of purposes in your difficult times. Generally, people take loan against property for residential, commercial or industrial properties. It is a secured loan process that is availed against the property mortgage with lower rate of interest and longer tenure. It is the type of loan that fulfills your needs in times of necessity.
Can You Apply?
If you are a self employed individual and want to start a new business with the requirement of huge amount. No matter whether you are an employed professional or an individual, you can easily avail this kind of loan. Without renting and selling you can opt for this option. You can keep your owned property on mortgage and can get the 40-70% of market value as loan. It is the most secured loan with lower rate of interest.
Basic Requisites While Applying for LAP
The property to be kept as mortgage should be in your name.
Different banks offer different packages such as Axis, HDFC, ICICI, SBI and many others.
Another imperative requisite is from the lenders side. It should have any other impediment.
LAP is applied for collateral property. Tenure for loan is 5- 15 years.
When Is The Best Time to Apply?
An individual who is having a property and is encountering financial crisis then he or she should avail LAP. However, Gold Loan is also a good option but due to sentiments attached with it people consider it as the last option. In that case Loan against Property is the best choice. Generally people avail LAP due to following reasons-
Expanding an existing business or to start up a new one.
For wedding of your children.
For urgent medical treatments.
For higher education of your ward.
Advantages of LAP
Value of the asset is created for a productive use.
Approval processing is quicker than home loan.
It also permits the partial pre-closure without levying the pre-payment penalties.
Refinance opportunity can be utilized to increase the loan amount. Moreover they can use the same property continuously.
Borrower does not lose the ownership of the property, however, in case the borrower does not pay EMIs and comes out as defaulter then the lender is entitle to acquire the property.