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What To Consider When Choosing Loan Against Property?

samrat saini 561 30-Aug-2019

With a loan against property, one can overcome the financial crunch, especially if it involves a substantial amount. Whether it's financing your child's wedding or funding your children's education abroad or setting up a business venture – a loan against property is your go-to option to fund them all.

A loan against property is a secured advance from a lender backed by a borrower’s property. The borrower mortgages the property to avail the loan against it. The loan amount is a certain percentage of the current market value. The borrower is required to repay the loan amount along with interest in EMIs. You can use a loan against property EMI calculator to determine your equated instalments.

Let’s take a look at things to consider while choosing a loan against property –

Evaluate your Eligibility

To get the most out of a loan against property deal, you must check loan against property eligibility criteria for the loan. The lender verifies the following to determine your repayment capability:

  • Age
  • Income stability
  • Repayment history
  • Credit history

Any existing financial responsibilities

Your property value as per the present market rates

You’ll need to submit the necessary documents to verify your eligibility. The loan against property documents required is:

  • Income proof and salary slip from the previous year for salaried professionals
  • For self-employed individuals, you need to produce evidence of your business, profit & loss balance sheet audited by a CA for the past 6 months 
  • Income tax returns from the previous year for both salaried and self-employed individuals
  • Photo Identity proof
  • Address proof

Keep these documents handy before you apply for a loan against property India. 

Choose Competitive Rates With Flexible Tenure

While availing a loan against property, go for the most affordable offers by weighing your options beforehand. Choose between fixed and floating interest rates by paying a keen eye on market predictions and fluctuations. Look for the loans with competitive rates of interest. This way it will help you with repayment in the longer run. You can use a loan against property EMI calculator of your desired lender to calculate the monthly instalments of your repayments.

You can procure a Loan against Property from Bajaj Finserv to fund your business processes, child’s education or wedding expenses or to meet emergency medical expenses. You can avail up to Rs. 3.5 Crore and Rs. 1 Crore as self-employed or a salaried applicant, respectively. Moreover, you enjoy simple loan against property eligibility criteria and flexible tenure of up to 20 years.

Bajaj Finserv also brings you pre-approved offers on unsecured credits like personal loans, business loans and secured advances like home loans among numerous other financial products. These pre-approved offers ease the process of availing finances and save time as well. 

Devise a Repayment Plan

Searching for the best interest rates isn’t enough. There is still a necessity to plan your repayment strategy in advance to repay the borrowed sum. You can use a loan against property EMI calculator to check the total interest you need to pay over the years and simultaneously calculating the ideal EMI as per your income. Keep in mind that your financial responsibilities shouldn’t burden you or put a strain on your savings. You must also master how not to default your loan against property.

Do You Need To Consolidate Debts?

If you’re suffering from multiple credit card debts or multiple loan dues, you can consolidate it with a loan against property in India. With a loan against property, you can turn your existing debts into a single loan with a low interest rate and repay it over an extended tenure. 

The loan against property criteria are usually relaxed as the lender sanctions the loan against a mortgaged asset. In case you default, your lender liquidates your assets to recover the outstanding dues. Moreover, the sanctioned loan amount usually ranges up to 70% of your property value, putting your lender at a low risk position to lose the funds you borrow. This leads to faster loan approval and quick disbursal, allowing you to start resolving your debts right away. This is how a loan against property can help you consolidate all your existing debts. Benefit the most from it. Reduce your existing loans easily and streamline your current and future finances.

Updated 18-Oct-2019

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