Learn How a Loan Against Property Can Help You Finance Your Wedding

Until a few years ago, most people felt sceptical about loans. To fulfil life’s big and small duties, borrowers saved money and take on the responsibility of tasks when they had enough money saved up. However, over the years, people have grown comfortable with the idea of loans and the popularity of loans against property have increased too. Loans against property are a type of secured loan under which a borrower pledges a residential or commercial property as collateral in return for loan money. The papers of the property stay with the lender through the tenor of the loan and after the borrower has repaid the loan in full, the lender returns property papers and removes lien from the property. The borrower remains the owner of the property throughout the loan tenor and can use the property as they please. However, the lender can sell the property for loan recovery in case the borrower defaults on loan. 

Loans against property funds come with zero-end use restrictions. In simpler words, a borrower can use the money availed of for any purpose they like. For instance, the borrower can use the money to clear debt, pay emergency medical bills, fund a child’s education or even their wedding. Loan against property for wedding has become a popular way for homeowners to pay for their child’s wedding. There are several reasons for this. Let us look at why a loan against property for financing a wedding a good idea is a good idea. 

Benefits of Loans Against Property for Financing a Wedding

• One of the key reasons why a loan against property for financing a wedding is a good idea is that these loans give borrowers access to a substantial amount of money and everyone knows when it comes to Indian wedding, people prefer going all out. Under loans against property, borrowers sanction anywhere between 50% to 60% of a property’s value as a loan. As an example, if the property you plan to pledge as collateral is worth Rs.1 Crore, you will easily be able to get up to Rs.60 Lakh as a loan, which is a lot of money to handle all kinds of wedding expenses. 
• Loans against property are sanctioned at low interest rates, which makes repaying these loans quite easy. In fact, the loan against property interest rates are the second lowest after home loans. Thus, a borrower can avail of this loan without worrying too much about repayment. 
• Loans against property also come with a long repayment period. In most cases, borrowers easily get up to 20 years to repay their loan. Such a long repayment tenor makes loan repayment easy and one’s EMIs comfortable. 

If you are thinking of availing of a loan against property to fund your child’s wedding, do not think twice. If you own a property, you can most certainly take a loan against it. Loans against property offer several benefits. However, these loans require you to pledge your property as collateral and the lender can sell the property for loan recovery in case you default on loan repayment. Therefore, one must avail of these loans after proper planning and only when they are convinced that they can afford the EMIs they wish to avail of.