Here’s How to Keep your Loan Against Property Interest Rate in Check - Loan Trivia


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Wednesday 25 May 2022

Here’s How to Keep your Loan Against Property Interest Rate in Check

Loan Against Property Interest Rate

As a secured financing option, a loan against property is available at low rates of interest as compared to its unsecured counterparts and can be suitably affordable. Individuals can further work on a few aspects related to their borrowing profile to secure an even lower loan against property interest rates than the standard offers.

Tips to keep the interest of a LAP in check

Below are some tips to reduce your mortgage loan interest rate for enhanced affordability –

  • Make sure to go for in-depth market research and compare among lenders to find the lowest rates on loans.

  • Even though a credit score is not a mandatory requirement for a loan against property, a high credit score above 750 can help secure better rates. You can thus work on your credit profile and make necessary changes well in advance for credit score improvement by the time you borrow.

  • Apply for a loan amount lower than your maximum eligibility. It should enhance your repayment capacity and thus help with negotiating for the best LAP interest rates.

  • Similarly, you can repay existing dues to better accommodate a new loan with reduced risk for the lender.

  • Further, if you have already availed of a property loan, you can still secure lower property loan interest rates by opting for a balance transfer facility. It allows you to switch the outstanding loan amount to a new lender offering better rates on loans along with other favourable terms in advance.

Alongside interest rate reduction, carefully planning repayment strategies can help save on total interest payable. For instance, you can opt to prepay your property loan at any time before the tenor’s end to save on interest payment.

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