A Loan Against Property is one of the easier methods of financing to get access to a higher amount of money. What’s more, the loan against the property interest rate is also lower as you get money pledged against your property.
Hence, compared to a personal loan with a higher interest rate, the Loan Against Property serves as an affordable financing mode. Anyone who is salaried can get access to up to Rs.1 crore, and up to Rs.3.5 crore is available for self-employed professionals.
The loan against property application has become easier these days as you can do that online and avoid all the hassles. However, before you get to apply for the Loan Against Property, you need to know some tips that will help you go about it without issues.
Check Out These Tips Before Applying For A Loan Against Property
- The Value Of Your Property
No matter if you intend to apply for the Loan Against Property on commercial or residential property, you should be aware of the total monetary worth of the property. If you need a loan amount of Rs.50 lakh, but the estimated price of your property is only Rs.40 lakh, then getting Rs.40 lakh won’t be possible. Also, the loan amount can’t be more than the value of the property. Nonetheless, you can get 60-80% of the property’s value as per your lender’s terms and conditions. In case, if you need more money, then you will need to figure out some other financing modes.
- Your Income And Ability To Repay
It’s given that people opt for Loan Against Property when they a large amount of money to fund their diverse needs. However, the final amount of loan approval will depend on your income, and repayment capacity. As per your income and suitable EMI plan, and another loan against property eligibility, your repayment tenor will be decided. It may be from 2 years to 18 or 20 years or more as per your lender’s policy. You should also have a consistent employment history to show your ability to repay the loan on time.
- The Role Of A Co-applicant
If you are unable to fulfill any one of the Loan Against Property eligibility terms, you can also apply for it along with a co-applicant. Your lenders will run a check on your proposed co-applicant to decide if you can stay together or not.
- The Real Estate Ownership
If you are the only owner of a property that you wish to pledge, then there should not be issues in acquiring a loan against the same. However, if there are co-owners who do not agree with your intention to apply for Loan Against Property, then the loan request will be rejected. It will also stand rejected if the ‘to be mortgaged property’ is in any disputes.
- Always Know About The Fees Associated With The Loan Against Property
Apart from the loan against property interest rate which should be known to you, you should also know about other fees involved with it. Yes, there could be some processing fee, sales tax, foreclosure and prepayment charges, agent cost and more. However, most of the leading banks and non-banking finance companies (NBFCs) don’t levy prepayment and pre-closure charges anymore. Thus, being aware of what will cost and what won’t help you know how much you can save.
The Loan Against Property is surely one of the smartest ways to arrange some money at a lower loan against property interest rate. Now that you are aware of some vital tips that you should follow before applying for it, it will help you go for it confidently. You can uncover your special pre-approved loan offers right away after sharing some basic personal details such as name and mobile number.
Additional Read: Tips to avail Loan Against Property with a Low CIBIL Score
Bajaj Finserv comes with some pre-approved offers on loan against property, housing finance, business loans, personal loans, and easy financing and a lot more. It is designed to make your loan application/processing easy and less time-consuming.