How to Choose the Right Lender for your Property Loan?

Loan against property or property loan offers immediate funds to an individual by placing their property as collateral. Choosing the right financial institution is crucial to maximising the benefits with minimal costs. Here an in-depth detail about choosing the correct lending institution is given.

5 Tips on choosing the ideal lending partner for a property loan

One must conduct research about the lender before choosing one. The tips will help an individual to make an informed decision.

1. Application procedure

One must choose a lender who offers an easy and convenient LAP procedure. The Property loan application process starts by filling up an application form for property loan. Thus, one must consider the ease of an application process. 

2. Costs associated

The majority of people think the rate of interest levied is the only cost related to property loans. However, there are various additional charges levied on a LAP. Henceforth, a borrower should go through all the costs related to it which all together make up the total loan cost.

3. Eligible loan amount

Before choosing a financial institution, a borrower should assess whether he or she is getting the desired loan amount or not. Several lending institutions offer 'surrogate income' where one gets additional borrowing facilities. However, this extra power is offered to specific eligible borrowers.

4. Repayment flexibility

It is advisable to take a loan amount which the borrower can easily repay within the due dates. Therefore, choose a lender who allows their borrowers to choose or customise the repayment pattern as per convenience. 

5. Check the reputation of the lender

Conducting a thorough background check of loans against property lenders is important. Thus a borrower should look into online reviews of previous and existing customers. This way one will be able to find discrepancies (if any). In case of any queries, one must communicate with the potential lending institution. 

Loan against property eligibility criteria

An individual needs to meet all the below-stated eligibility criteria to maximise the chances of getting fast loan sanctions.

For salaried individuals

• Should be employed with a private/public sector company, and MNC

• Must be employed for a minimum of three years

For Self-employed applicants

• Must show a stable income from an enterprise 

• Should have a business vintage of five years (minimum)

How to use a loan against a property EMI calculator?

By using the property loan EMI calculator, a borrower can calculate their mortgage loan EMI by providing minimal inputs. It is an easy-to-use tool that can be used many times for free. By referring to the below-listed steps, one can easily use this online tool.

Step 1: Search for ‘Property loan EMI calculator’.

Step 2: Open any of the calculators and enter the loan amount.

Step 3: Use the slider to set the tenor.

Step 4: Enter or adjust the slider to set the interest rate. 

Afterwards, one will get the results instantly.

Numerous financing institutions give pre-approved loan offers to their existing customers based on their credibility. By providing their name, and other details on the lender's official website, one can check their eligibility. Pre-approved offers are provided on loans against property, home loans, and many others.

A property loan is a log-term commitment, making it imperative for borrowers to select the right lender. Thus, a borrower should consider all the above-stated tips to make an informed financial decision.