Find Out The Reasons That Make a Loan Against Property The Most Cost-Effective Loan

Find Out The Reasons That Make a Loan Against Property The Most Cost-Effective Loan


When you are in urgent need of cash, various options come into your mind. While some of them, like borrowing from a friend or relatives, are interest-free, the rest require you to pay the principal, along with the monthly interest. To choose the best loan among hundreds of loans need hours or even days of research.

If you are looking for a loan that is more cost-effective than others, a loan against property or mortgage loan can be your best choice. Read on to know more about loan against property interest rates, eligibility criteria, terms, and other features to discover why a mortgage loan is considered as the cheapest loan you can avail.

What is a Loan Against Property?

A loan against property is a loan that requires you to keep your property papers as a collateral guarantee for receiving the loan amount. As a loan against property is a secured type of loan, lenders offer several benefits that are hard to find with other loans.

The Cost-Effective Features of a Loan Against Property

Loan against property comes loaded with various features that make it one of the most frequently availed loans in India. The following are a few:

1. Low-Cost EMI :-

Loan against property interest rate is the cheapest across loan categories. For example, PNB Housing’s loan against property interest rates starts from 9.80%. It is sporadic that will you find a loan that beats this interest rate. Lower interest rate means lower EMI, resulting in huge savings every month.

2. Minimal Documentation :-

To avail a loan against property, you have to submit documents like age, address and identity proof, income tax returns, bank account statement, educational certificates, salary slips or business profit and loss statement, property documents, and processing fee cheque. Hence, you do not have run after ‘hard to find’ certificates for getting the loan approved.

3. High Tenure :-

In addition to a low rate of interest, loan against a property usually comes with a repayment tenure of up to 20 years. Low-interest rates, coupled with long tenure, automatically bring down your monthly outflow. The loan tenure and interest rate, however, depends on your credit score and nature of the property.

4. No Questions Asked Loan Utilisation :-

Like a personal loan, a loan against property can be used for any purpose you like. However, as a personal loan is unsecured, the loan amount is lesser, and the interest rate is higher than a loan against property. Hence, a loan against property is the best choice when you require more money at a low-interest rate.

5. Instant Approval  :-

Lenders like PNB Housing provide the facility to apply for a loan against property online. Uploading documents on the portal is as easy as getting the loan amount in your account. By availing the benefit of the online loan application, not only do you save precious time but also the money that you would otherwise spend on traveling to and fro the lender’s office.

6. High Loan Amount :-

Unlike most other loans which have a maximum cap on the amount you can withdraw, a loan against property has no upper limit. Generally, you can get a loan amount of up to 60% of the property’s value. Hence, the loan amount depends solely on your property and nothing else.


If you combine the best features of all other loans offered by Indian lenders, you will get a loan against property. It, in turn, means that it is one of the most cost-effective loans out there. So, make sure to choose a reputed lender like PNB Housing for getting unmatched convenience and industry-best loan against property interest rates.

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