5 Rules to Follow while Applying for Loan Against Property at a Low Interest Rate

 

As lenders have conditional ownership of borrowers' property, they are likely to offer a competitive interest rate on loans against property. 

Here are ways to help borrowers’ secure further affordable lending rates.

5 rules to avail loan against property at low-interest rates

Before individuals apply for best property loan in India, they must be aware of the following ways to avail of the credit option at low-interest rates.

            1. Compare different lender

The most effective way to secure affordable interest rates is to compare different lenders and their offerings and opt for one extending reasonable loan terms.

            2. Show stable income and employment status

Borrowers with long employment history and stable income status are considered to repay loan amounts on time and are offered affordable loan against property interest rates. 

            3. Select the right loan tenor

Property Loan tenor is a significant parameter that influences the interest outgo. A longer repayment term reduces the EMI burden, but it increases the overall interest outgo. A shorter tenor, on the other hand, reduces the payable interest. 

            4. Choose property in a prime location 

Property located in a prime location with sufficient amenities will not only allow individuals to fetch higher loan amounts, but it will also help one fetch lower interest rates. A lower interest rate reduces property loan EMI burden and helps save on borrowing costs. 

            5. Opt for the correct interest rate

As floating rate undergo quarterly revisions, they are slightly more affordable than fixed interest rate. 

Following the pointers mentioned-above can help individuals opt for an affordable interest rate on loan against property.