A loan against property provides you with the ample funds to take care of your personal and professional needs. Like all other borrowing options, planning and managing repayment is a must for this loan too. Doing this in advance can help you take the necessary measures to avoid defaulting or delaying your EMIs, and help you smoothly repay the loan throughout its tenor. Here are 3 ways to guarantee that you don’t default on a loan against property.
Consider various sources of repayment and plan early
Managing your finances prudently will help you repay your loan better. You can make your repayment experience more comfortable by choosing to save a part of what you earn as a buffer towards your loan repayment. Remember that your approval for this loan depends not just on the pledged collateral, but your income as well. So, plan your finances well, understand what your fixed expenses are and decide a convenient EMI amount. You can also use your investment earnings to repay the loan.
Apply for a joint loan
You can decrease the burden of loan repayment by applying jointly for a loan against property with your spouse or relative. This way, another person can contribute towards EMIs to lighten the load on you. If you are taking a large loan amount, applying with a co-applicant can help you get the sanction easily too. Do remember that applying for a loan against property with a co-applicant means that you will need you to submit his or her financial documents too. This is so that the lender can verify and ensure that the co-applicant is financially competent to contribute towards the repayment of the loan.
Understand the associated fees and charges
Start off by choosing a loan against property that offers you the lowest rate of interest by comparing various lenders. Then take a look at other fees charged by the lender such as processing fee, secure fee, penal interest, and more. Being aware of various fines and penalties will help you avoid the same and also choose a lender whose additional charges are minimal. This will help you plan your repayment better by adding in prospective charges that you would otherwise not consider. For example, Bajaj Finserv’s Loan Against Property offers you up to Rs. 3.5 crore at a nominal interest without any loan statement charges. You can also make part-prepayments without incurring any extra charge.
While these 3 methods will ensure that your repayment process is more organised and well-planned, be aware of repayment right from the application stage. Since a loan against property has a longer tenor, you can reduce your EMI amount by choosing a longer repayment duration. Use the loan against property EMI calculator to estimate your potential EMIs and choose the right loan amount that you can afford. This will make timely repayment easier for you.
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