Starting a business and running it is no easy task. If you have ever tried to start and establish something of your own, you would know that setting up and running a business requires time, energy, and most importantly, money. Even those of us who have great ideas and staunch determination to make that business idea work find the paucity of money to be a major hurdle. Thankfully, financial institutions have devised tools to help businessmen realize their dreams.
One such tool is a business loan, which has gained immense popularity among the business class. However, is a business loan the best option you have? What about a loan against property? Between a loan against property and business loans, which is better?
The answer is a loan against property. Unfortunately, most business owners are unaware of the features and benefits of this loan type. In this page, we tell you why a loan against property is a better option than a business loan. However, before we can do that, let us first understand the difference between the two.
A loan against property is a secured loan in which a borrower pledges their property as security. These loans are released against both residential and commercial properties. Since LAP loans are secured loans, banks and NBFCs sanction them at a lower interest rate than that charged on unsecured loans, such as a personal loan or business loan. Further, the funds released under a LAP loan can be used to meet all kinds of expenses.
A business loan is an unsecured loan that allows borrowers to avail of funds without pledging any collateral. The funds availed of must be used for expanding operations, buying tools and machinery, or boosting working capital, among other business-related needs. While a business loan may help you achieve new heights in your business, it is not the best financial tool to meet your financial requirements.
If you wish to understand whether a loan against property is the better option for you compared to a business loan, read on to discover the difference between the two.
If you need money to start a business or expand an existing one, know that a business loan is not your only option. In fact, if you need a huge amount for a longer period, opting for a loan against property would be a far better choice than availing of a business loan at a high interest rate. Avail of a loan against property with us and get the amount credited with 72 hours* from document submission.
Loan Against Property
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Loan Against Property Balance Transfer
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Types of Loan Against Property
Last update on 11-Mar-2021
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