A loan against property is one of the easiest ways to secure funds for various needs, whether for business expansion, education, or medical emergencies. It allows you to borrow money by pledging your property as collateral. Since it is a secured loan, lenders offer lower loan against property interest rates compared to unsecured loans like personal loans. However, before opting for this loan, you must take a long-term view of the implications. Here are five key considerations before taking a loan against property.

1. Loan Amount and Property Valuation

The loan amount depends on the market value of the property you pledge. Typically, lenders offer 50% to 75% of the property's value as a loan. However, the final amount varies based on factors like property type, location, and lender policies. If your property is in a prime area, you might get a higher loan amount. Before applying, get a fair idea of your property's market value and check how much loan you are eligible for.

2. Loan Against Property Interest Rate and Repayment Terms

One of the biggest benefits of a loan against property is the lower loan against property interest rate compared to unsecured loans. However, rates vary based on factors like credit score, loan tenure, and lender policies. Some lenders offer fixed rates, while others have floating rates that change based on market conditions. A lower interest rate reduces the EMI burden, making