Important factors that you need to know before applying for a loan against property - Loan Trivia


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Tuesday 28 September 2021

Important factors that you need to know before applying for a loan against property

applying for a loan against property

 A loan against property is utilised to meet various personal and professional requirements. Individuals can borrow sizeable amounts by pledging their owned residential or commercial property. One can also use the credit facility as a flexi loan and avail funds to start or expand businesses, pay for higher education, consolidate debt and other personal or professional financial requirements.

But before applying for a loan against property, individuals should know the following point, which will ease their repayment procedure.

Points to know before availing a loan against property

The following essential pointers will focus on the associated benefits and features of a loan against property. 

  1. Property valuation

The valuation of a property is determined on the basis of its age, locality, amenities etc. Therefore, it is essential to be well aware of the value of your property to ensure availing your desired amount when pledging it as collateral. Usually, financial institutions offer 75%-80% of the pledged property’s value. However, a high-value property situated in a good locality will allow borrowers to receive faster loan approval.

  1. Eligibility criteria

Every loan comes with its set eligibility parameters. For this loan, eligibility parameters vary from one lender to another. However, it is crucial to understand the criteria before applying for a loan. This will further eradicate the chances of loan rejection and ensure availing your desired amount.

Alternatively, borrowers can use a loan against property EMI calculator to determine the amount they can avail and plan their repayment accordingly.

  1. Check various lenders and interest rates

The loan's interest rate will play a pivotal role in deciding a borrower's affordability and repayment ability. So, before applying, it is essential to compare and review different lenders to avail lowest interest rate for this loan. Alternatively, borrowers can use a loan against property interest rate calculator to determine the interest paid throughout the tenor.

Apart from these pointers, borrowers need to know about essential documents required for loan against property, associated fees and charges repayment tenor etc., to ensure hassle-free loan application.

To Know more about Why Loan Against Property Is Better than a Personal Loan then you must visit Bajaj Housing Finance official website.

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