Why loan against property is better than personal loan

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 Why loan against property is better than
personal loan
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• Taking a loan against property in case of
  emergencies is an age old practice.
• Mortgaging homes or properties for loans has
  been done even before banks existed.
• Even today property is said to be the best
  investment and people have often use their own
  homes as guarantees or as a mortgage.
• Loan against property is preferred by many
  because this way you can get a higher loan amount
  with the benefit of lower EMI.

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• Mortgage loan interest rates are also low and
  they also have longer repayment options.
• Recently, Crisil said in a note that the amount
  of loans taken against property is set to double
  to Rs.5 trillion by 2019 and it is expected that
  the number will grow by 22 annually in the next
  four years.
• There are also emerging signs of a build-up in
  risk as competition intensifies, Crisil noted

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• If youre conflicted between whether you should
  opt for a loan against property or go for a
  personal loan instead, let us tell you why an LAP
  is better for you.
• Personal loan interest rates are way higher than
  those of loan against property.
• This is because in a personal loan you do not
  have collateral with the bank.
• The difference between the interest rates can
  rage anywhere from 4 to 5, which can mean a lot
  of savings.

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• Since youre keeping your own property as
  collateral banks will offer you a higher amount.
• The amount will be based on the valuation of your
  property.