Why Taking Loan against Property a popular way of taking loans

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Why Taking Loan against Property a popular way of
taking loans? With numerous ways of taking loans
from the bank and other financial institutions,
Loan Against Property is the most popular. The
reason why this way of taking a loan has become
relatively popular is because one can get a
large sum of money. Once they mortgage the
property with the bank, the bank gets a security
against the loan amount. This makes the bank at a
minimum risk of losing any money. Hence, banks
prefer to extend a loan that comes with
security. This makes people invest money in
property as they can get a large sum of money for
various purposes such as for Business Loan in
Delhi or any other city where the loan is taken
from or building another property. Mortgaging
property helps one come out of tough situations
too when there is no liquidity. This way one can
also liquidate the assets. Banks prefer to give
this loan without much paperwork, this eases the
process for the bank as well as for the
customers. Another aspect that has allowed people
to take such loans is the low-interest rate.
Low-interest rates do not become heavy on people
who have fixed income, enabling them to save
parts of their salary/income. So although you
mortgaged your property, but you have received a
large sum of money on a rather low interest. You
may use this money judiciously to multiply the
money if you have taken it as a Business Loan in
Delhi, Bangalore or some other city. The banks
extend this loan and the amount is based on the
market price of the property. If the property
has a bigger value, the loan amount will be up to
70 of the money as a loan. The remaining money
stays with the bank as the margin money. This is
the security that the bank takes in case one
fails to pay the loan amount back. Moreover,
this ensures that the banks are safe against any
ups and downs of the market. However, since loan
money has to be repaid it must be used sensibly
so that you get your property back upon fully
paying the loan amount with the principal and the
due interest. Loan Against Property is thus a
common and comparatively easy way of borrowing
from the bank with a low rate of interest.