A lot of people Take personal loans to buy land (land). If you are also going to take a personal loan to buy land, then take special care of some things. First of all, know that buying land is a very big financial decision. You will need a lot of money to fulfill this. In such a situation, if you take a personal loan of a big amount, then there will be a financial burden. Are you preparing to deal with that situation? Let us know that if you are planning to buy land by taking personal loans, then first know its benefits and disadvantages.
Can a personal loan be taken to buy land?
Yes, you can use personal loan to buy land in India. This is because personal loans do not impose any restriction on where you will use the money you get.
Benefits of taking personal loan in buying land
No need to pledge
You do not need to pledge any goods in taking personal loans. Personal loan is an unsecured loan, meaning that you do not need to mortgage property or gold. This is helpful when you have no valuable assets to mortgage.
resilience
Since you can use personal loan anywhere. So you can easily do this land. If there is some money less in buying land, then you can complete it by taking a personal loan.
Minimum paper work
Personal loans require much less paper work than a safe loan. Banks easily give loans to people with salary profession.
Loss
High interest rates
Personal loan interest rates are usually from 12% to 24%, which is much higher than home loans. Also, there is no tax benefit.
Short period of loan
Personal loans are for a maximum of 5 years, causing EMI more. In comparison, the duration of home loans is longer and EMI is low.
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