Property Loan Gives You the Opportunity of No Usage Restrictions

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Loan Against Property V/S Gold Loan
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What is a Loan Against Property?

• A loan against property is a type of secured
  credit that one can avail by collateralising
  self-owned 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.

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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.

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Difference Between Loan Against a Property and
Gold Loan

• 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.
• 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.

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• Pre-approved Offer
• These offers make the loan application process
  straightforward and less time-consuming. 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.

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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.