Key Features & Benefits of Micro Loan
Do you have a small business and plan to expand it and conquer the international market? Are you an employee with regular earnings and want to give your son or daughter the opportunity to study anywhere they want in the world or let their dream wedding come into a reality? If you want any of these, it is strongly recommended that you consider LAP or Micro-Loan Against Property. Benefits of Micro Loan
This is not as hard to understand as the name already explains what LAP is all about. Getting a loan against your property can make all your dreams come true. The loan amount is a percentage of your property’s current market value. The property can be residential or commercial, as long as it is under your name, you can use it to apply for LAP.
There are many benefits why would you turn to this option and not other types of loans or loan opportunities? To convince you that this is what you need to consider.
read the key features and the benefits of Micro Loan below:
Easy to Get
Since this loan requires mortgaging a property, it is considered to be a secured loan hence easier for institutions to release approval. The property offers security to the institution lending the money, hence, expect that they are more than willing to approve the loan application. They have nothing to lose, actually, more to gain if the borrower fails to make a payment.
With this, if you are the borrower, it is a must that you pay your loan on time.
Lower Interest Rates
You are using collateral with this type of loan, hence the interest in LAP is most of the time, if not all the time, lower compared to a personal loan. The interest rate for LAP can be anywhere between twelve to fifteen percent, compared to personal loans which range from fifteen to twenty-five percent or can be higher.
If you have a property, there is no reason not to consider this loan if you need cash and want to avoid high-interest rates.
Quick Loan Disbursal
Do you need fast cash? If so, LAP is what you need to consider. LAP does not require a lot of paperwork compared to other types of loans. Generally, the financial institution will just require your property title and identification. There is no need to submit proof of income as the property will serve as your loan collateral.
Once the loan is approved, you just need to wait for seventy-two to ninety-six hours or can be faster, to receive your money.
Compared to a personal loan which has a tenure of five to seven years, LAPs can be extended up to a maximum of fifteen years. But of course, if you can pay it sooner, might as well do so to avoid paying additional interest fees or charges.
Significant Economic Gains
Since it is in demand, this boosts the economy in many ways. Using the money loaned to purchase can help the economy, the same as the interest generated by the financial institution from the loan does.