Whether you are planning to buy a new property, fund your child's education, pay the cost you'll incur while getting married yourself or getting your kids married, or simply finance your new business with the money - a mortgage loan is the best choice. The Interest Rates on Loan Against Property are quite lower thus making it a better option for borrowers to choose.

The reasons are very simple and mentioned below:

• Tax Benefits: A loan against property is a cost-effective credit scheme, but that is not the only reason for its unbiased popularity. Using the money obtained from the said facility for certain specified purpose allows the borrower to claim tax deductions. For instance, the interest paid towards the loan can be claimed as a deduction as per the section 80C of the Income tax law. However, you are eligible for deduction only if you have used the money for paying the cost of home renovation, funding your child's education etc, or for paying the down payment of your house.
• Improves CIBIL Score: Assuming your present CIBIL score is not up to the mark, you won’t be able to take an unsecured loan. Even if you get an unsecured loan, the same will be at a high rate of interest. So, taking a secured loan against property is not just cheaper, it also improves your CIBIL score. However, you need to manage your loan effectively for the same.
• End Usage Flexibility: Last but the most crucial part, as a borrower you get the freedom to use the money the way you want. In short, you get end usage flexibility that allows you to borrow without mentioning the purpose of loan to the lender.

In the end, just find out a good credit scheme and compare it comprehensively before applying for it.