If you have an asset, preferably a property, you can easily use it to fulfill all your financial requirement. You are not asked to sell it off. You can simply keep the property as an asset or collateral with the lender and apply for a loan against it.
How can you use the loan amount? You can use it in any means, be it financing the purchase of business assets, be consolidating your debts, be paying for your child’s education or wedding expenses, or increasing income by buying a second property and leasing it.
It is useful in any situation under the Sun. There can be other means to finance your requirements, but it will be lucrative to you as Loan Against Property Interest Rates is quite lower.
It will be better for you if you apply for a Loan Against Property when you have backup funds to repay the loan even if the investment falls through when investing is completely risk-free and will give guaranteed returns.
When to avoid applying for a loan against property? When you are not prepared for its bad consequences. You are having an asset in real estate whose value is ever-increasing. You are risking that asset to gain more funds as the market fluctuates and there is no guarantee of fixed returns.
So, remember every aspect of it and then invest in it. To know about the other factors, read: Is it Smart to Invest Money from a Loan Against Property?
Loan Against Collateral 