Top 5 Factors to Check Before Taking a Loan Against Property

There are many funding options in India. One of the most affordable yet feature-laden alternatives is none other than the loan against property. If you have a property and need some funds, you don’t need to look elsewhere for money.

The loan against property can let you have a large amount which you can use for multiple needs. Yes, based on your loan against property eligibility, income, CIBIL Score and property’s valuation, you can borrow up to Rs.10 crore.

Since the loan against property is offered after pledging your property, the interties rate is lower. Hence, it becomes easier for anyone to repay the loan without budget concerns.

Nonetheless, before you apply for the loan against property India facility, you need to consider some factors. Considering the same will assist you to apply and manage the loan against property without issues.

Check your Eligibility and keep the Documents Ready

The first thing that will help you take the right step towards the loan will be determining your eligibility and documents required. Here is the common loan against property eligibility and documents needed for it.

> Your age should be between 25-70 years

> You should be an Indian citizen

> You should either be a salaried or self-employed person

> You should either be residing or owning a property in Indian cities as declared by your prospective lender

KYC Details

> Last 3/6 months’ bank account statements

> The documented copy of ‘to be pledged property’

> Latest Salary Slips

> Recent colour and passport size photographs

> IT Returns

> Go for the lowest interest rates

You are now aware that the loan is offered against your property after pledging it; you can enjoy the lower interest rates. Hence, you should ensure to select a lender who is offering the lowest loan against property interest rates.

Additional Read: Easy Tips To Boost Your Eligibility For A Secured Loan

Opt for a Shorter Tenor

When you go for a shorter tenor, you can pay higher EMIs and pay off the loan against property super quick. On the other hand, paying smaller EMIs over a longer tenor will also require you to pay extra compounding interest. Hence, to save money, you should choose a short tenor.

Read the Loan’s Fine Prints at Least Once

People don’t want to read the loan agreements even once when their focus is on borrowing money to use for many needs. As a result, you may not know some hidden extra charges concerning repayments and other aspects. Thus, it may cost you dearly later. Therefore, you should ensure reading the loan terms at least once.

Shop around for the Best Loan offers

Everything is available over the internet, and so are the multiple offers for the loan. Thus, you should always shop around and compare all the available loan deals. This way, you can select the one suiting your income and repayment capacity. In turn, it may help you pocket savings while going for the best loans.

Are you ready to apply for the loan against property? Then, considering the discussed factors will boost your confidence in applying and managing the loan.

Bajaj Finserv presents remarkable pre-approved offers on loan against property, housing finance, business loans, personal loans and other financial products. Such offers aim to make the loan processes dead easy and fast.

All that you can do is share your basic details like name, and mobile number to check out your pre-approved loan offer right away!