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Business 1,115 views May 16, 2018
Things To Consider Before Applying For A Loan Against Property

A Mortgage Loan is any loan for which you have to submit collateral, and a Loan Against Property is one such loan. You can pledge a property that you own and avail a high amount of funds, depending on the value of your property. But, in order to use it to its full potential, it is essential to have a thorough understanding of a mortgage loan. This will help you plan your finances better, and make the most of your loan borrowing decision. So, take a look at a few things that you need to keep in mind when you take this loan.

Maintain A Good Credit Score, Check Eligibility Criteria And Documentation Requirements:
While your credit score isn’t the only thing that determines your eligibility, it is an important part of getting loan approval. This is because it is a measure of your creditworthiness, and shows whether or not you are responsible with borrowed funds. A good score will help you get a better rate of interest on your mortgage loan, as well as help you negotiate better terms with the lender.

Also bear in mind that your employment status can affect the interest rate. Sometimes, having a minimum income is a loan against property eligibility criterion that you have to meet. On the other hand, working at a reputed company may give your application a boost. So, be sure to check the criteria before applying to any lender. You can check for a Loan Against Property Eligibility on the lender’s website. This allows you to prepare for your loan application beforehand and avoid last minute hassles.

Pay Attention To The Interest Rate:
Before proceeding with your application, it is important to be informed about current loan against property interest rates. This involves comparing mortgage loans offered by various lenders and picking the best one. Apart from checking the rate of interest, also check to see whether the interest rate is fixed or floating. This will ensure that you are clear about how interest will be calculated on the principal that you borrow.

Consider Affordability Of The Loan:
Before you proceed with the sum that you have in mind, take a moment to gauge the loan’s affordability. This means evaluating the income you have left over after paying your monthly expenses, and factoring in the cost of EMIs. After you budget for monthly expenses and emergencies, use a Loan Against Property EMI Calculator to see how much you will have to pay towards the loan on a monthly basis. This will allow you to judge whether or not you can afford the loan. Then, you can either proceed with the application, or look for a loan with a lower interest rate, or choose a lower principal amount that is in line with your budget.

Look For A Lender Who Offers Good Service:
In order to choose the ideal lender, carry out a thorough search of the market. This involves looking up additional benefits that can make your loan experience smooth and fruitful. Choose a lender like Bajaj Finserv whose Loan Against Property gives you a high-value loan at an affordable rate of interest. Besides, they offer additional features such as doorstep document collection, disbursal within 72 hours, online loan management and the option to avail the sanction as a Flexi Hybrid loan.

As long as you are mindful of these 4 factors, you’re sure to have a rewarding and hassle-free loan borrowing experience.