Whether it is a new setup or you are running it for quite some time, the business will require funds to function properly. You will gradually find that all your savings are running out, and you still need more money. That is where LAP can help you out. Under this, you can keep your most valuable asset as collateral and avail of funds for your business. Here are a few reasons why LAP is the best solution for your company.
#1 Significant Amount
The most exciting factor about the loan against property is that you can easily get more significant amounts as compared to any other loan. You can avail of a pre-determined percentage of the current market value of your property. If you opt for the correct lender, you may even get crores of loan just by keeping your house/commercial place as collateral.
#2 Easy To Avail
There is a lot of hassle that you need to go through to get business loans. Plus, you can face even more challenges if you are just starting off your company. In order to avoid all this trouble, you can get a LAP. As your property is kept as collateral, the loan falls under the secured category. Therefore, the loan terms are straightforward, making it easy for you to avail of the loan. But it will be best if you compare the LAP loan interest rates to get the most beneficial loan for your business.
#3 Longer Tenures
Another beneficial part of a LAP is that a longer tenure accompanies it. Depending on your amount and some other factors, you may be able to set the repayment duration for up to 20 years. This not only reduces the EMI amounts, but it also makes the repayment stress-free. So you can easily include the smaller installments into your budget.
#4 Better Interest Rates
If you opt for any other loan that can be used for your business purposes, you will end up paying a significant amount under the excessive interest rates. On the other hand, a LAP loan interest rates are kept nominal. The reason for lower interest rates is the security of the collateral. As the lender has some guarantee of repayment, they offer better interest rates to make the loan more beneficial for you.
#5 Flexible Usage
Most of the loans in the market are specified for a particular usage. You generally can’t put the funds anywhere else. However, there is no such issue with a loan against property. Once you get the money, you can use it for any purpose without being answerable to anyone. So even if some personal problem arises in-between the business setup, you can take out some funds and get rid of the trouble.
Apart from these benefits, one more point of attraction about LAP is that you don’t lose your property’s ownership rights. Therefore, you can easily make your house fund your business and repay the amount conveniently through the EMIs.