Avoid these mistakes before opting for a loan against property

If you are in need of a considerable amount at a lower interest rate, you can apply for a loan against property facility (LAP loan). 

Since the loan against property interest rate is lower, you can manage affordable EMIs. 

But, many people make mistakes when they apply for loan against property. And you should avoid all those mistakes. 

Read on and know more!

Ensure to avoid these mistakes when you apply for a loan against property

1. Failing to compare loan against property interest rate 

The loan against property interest rate is not higher due to the presence of collateral. But, if you don’t compare all available loan offers, you may miss out on the best offer. Hence, you should always ensure to compare all available offers when you have to apply for a loan against property. This way, you can select a deal matching your needs and budget the most. 

2. Choosing the wrong tenor 

A smaller tenor may help you save big on interest charges, but that will also increase the EMI amount. On the other hand, a longer tenor means paying a smaller EMI amount, but that will increase the payable interest rate charges. Hence, you should pick a tenor that’s not too short or not the longest. 

3. Not knowing about the actual loan disbursal time

Some lenders may take ages to approve your loan against property application and disburse the amount into your bank account. Hence, you should know about the actual loan against property disbursal time ahead. Leading lenders take only up to 72 hours to disburse your sanctioned loan amount into your bank account. 

Besides avoiding these mistakes when you apply for a loan against property, you should always maintain an emergency fund. It will help you to avoid defaults. In turn, it will help you to maintain a robust CIBIL score.