India, considered as one of the fastest growing economies in the world, is expected to continue at around 8% over the next 10 years. Factors like rapidly developing education skills, growing job opportunities in various sectors, and a steadily evolving middle-class contribute significantly to this progress. It is further backed by a steady investment made in the business front.
However, making considerable expenditures to meet professional goals often take a toll on personal financial requirements. The best go-to option here would be a loan against property that comes with no-end usage restrictions, a high-value credit amount, and an extended tenure promoting convenient repayments. The comparatively low loan against property interest rates provides borrowers with the benefit to repay with lower EMIs.
Lenders provide loan against property despite considerably lower CIBIL score and with minimum eligibility criteria and nominal documents. This is because they already have the assurance of a mortgaged property that can be later liquidated to recover the outstanding amount. At present, multiple lending organisations provide this mortgage loan catering to specific requirements of borrowers.
Considering that loans against property provide with multiple benefits, borrowers often seek immediate funding without looking into the finer aspects of such credits. Here are a few rules that they should follow while availing this kind of loan. These will also give them an idea about the things to avoid when availing a loan against property.
1. Go For Affordable Emis –
Individuals mainly apply for such a secured loan to invest in purchasing property, funding offshore higher studies, weddings, etc. Advances prevent them from breaking their savings while also meeting their financial purposes effortlessly.
It is essential that individuals opt for affordable EMIs towards loan repayment without any additional financial stress. This can be done by approaching reputed lenders who offer attractive loan against property interest or choosing appropriate tenure.
You can use online EMI calculators. Provide a few essential details like tenure, loan amount, interest rate, and assess if the EMIs are affordable. This will also help them make an informed choice that is mandatory while taking such a financial decision.
2. Opt For Shorter Tenure –
One of the essential features of a loan against property in India is its extended tenure that may go up to 18 to 20 years. However, in case borrowers can afford to pay off higher EMIs, it is always suggested that they go for shorter tenure. Despite higher EMIs, the total repayment amount decreases because of reduced overall interest amount payable.
3. Approach Nbfcs That Require Minimum Eligibility Criteria –
The loan against property eligibility criteria is kept nominal by most reputed lenders. Here are some of them –
- Age: 33-58 (salaried), 25-70 (self-employed)years.
- Occupation: Should be an employee of an MNC or in a public or private sector; or must be a self-employed individual with a regular source of income.
- Citizenship: Must be an Indian citizen or own a property in any of the cities specified by the lender.
4. Look Into The Loan Against Property Interest Rate –
Choosing interest rates (floating or fixed) is crucial considering the impact it has on the monthly instalments. Hence, it is imperative that borrowers not able to decide that fixed or floating interest rate which is better and weigh in the benefits before opting for one.
Borrowers should always go for reputed lenders like Bajaj Finserv who offer both floating and fixed Loan Against Property interest rate. Along with this, eligible borrowers also need to provide nominal Loan Against Property documents required to complete a simple application process.
These credits come with multiple borrower-friendly features like quick disbursal of funds, a flexible tenure, property dossier, etc. You also get to enjoy Flexi Dropline feature which enables you to make multiple withdrawals from a pre-sanctioned amount and repay at the end of the tenure or whenever convenient. Pay interest only the amount withdrawn and reduce the EMIs almost by half.
Additionally, they bring you pre-approved offers on multiple financial products including secured credits like home loans and unsecured credits like personal loans, business loans, etc. These offers make availing loans easier and quicker.
Enjoy the benefits of such offers and features, and invest the amount you acquire to meet your professional and personal financial goals strategically.