Loan Against Property for Wedding: is it a good idea
Weddings involve very high expenses and it becomes difficult for a common middle-class man to meet all the expenses himself. That is why there are various types of loans available in the financial market which can be availed for meeting the expenses of a wedding. A loan against property is one such loan which you can avail for sponsoring a wedding. But is the loan a good idea given the fact that there are specific wedding loans available in the market?
A loan against property can prove to be the best alternative to finance a wedding. Want to know why? Here’s why –
• You get a high quantum of loan
A loan against property is issued against the value of the property that you mortgage with the lender. You can avail loans of up to 75% of the value of your property. Since property values are high, you can avail a high quantum of funds through a loan against property. As wedding expenses are quite high, a loan against property would provide the sufficient funding required and would be the most suitable alternative.
• The interest rates are low
A loan against property is a secured loan as it is secured against the property that your mortgage. As the loan is secured the lender faces very low default risk. As such, the interest rates are also very low. The interest on the loan starts at 8.80% which is affordable and not heavy on your pockets.
• The repayment tenure is high
The repayment tenure allowed under a loan against property goes as high as 15 years. Since the repayment tenure is longer, you can pay off the loan affordably without straining your pockets. Even if you avail a high quantum of finance, repaying it would not be a problem over a long period.
• The loan is easily available
Applying and availing a loan against property is not a difficult task. Thanks to the online medium you can make an application for the loan online and get the loan within a short period of time. Thus, when funding a wedding you would not have to wait for a very long time to avail funds for meeting the expenses.
• You can use the property even after mortgaging it
Though the loan against property is offered against the mortgage of the property, the property remains with you and you can use it for residential or commercial purposes. You can even let out your property for rent to earn an income from it even when it is mortgaged for the loan. So, a loan against property lets you avail the benefits of your property even after mortgaging it.
• It is a multipurpose loan
A loan against property is nothing but a type of personal loan which you can use for meeting any type of expenses. When availing a loan for a wedding you can use the funds for meeting the varied expenses which incur when organizing a wedding. Moreover, you can use the funds for other non-wedding related expenses too without any limitations.