A Loan Against Property is a secured loan where the borrower can place their property as collateral with a bank or a lender to procure a large sum of funds to tackle their expenses. Loan Against Property is also popularly known as Mortgage loans. The eligibility criteria for a Loan Against Property are very easy to arrange and if the documentation and valuation of the property are cleared then the loan may be issued within 7-10 days.
Today there are multiple online Loan Against Property calculators available at your disposal that can help establish your financial standing and can give you’re an estimate on your monthly instalments and the principal amount payable for the tenor duration of your choice.
The most important factor for your interest rate on loan against property:
- Since it is a secured loan the loan against property interest rates are marginally lower in comparison to other forms of loans.
- The valuation of your property almost plays a major role in the interest rate sanctioned to you. If your property is well maintained, in a good locality and is fairly new then the interest rate issued will be lower in comparison to a property that is older or not maintained.
- Your CIBIL score establishes your financial capability and your spending habits. Every banking institution or lender that you apply to for a Loan Against Property will look into your CIBIL score to establish if you have been consistent in making payments for your previous loans and have not defaulted on any monthly instalments. If your CIBIL score is on the higher side the interest rate issued to you will be much lower in comparison to someone who has a lower CIBIL score.
Also Read: What is the minimum amount that can be availed as a Loan against Property?
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