You can use a loan against property for a variety of purposes. As the name suggests, this loan is secured and comes with a high loan amount that you can use to buy a home, commercial property, or for lease rent discounting. You can also use the credit as a Flexi loan to start a business, pay for higher education, or consolidate debt. But, before you apply for a loan against property, take a look at 5 things that you should be mindful of.
Know the value of your property
Every property has its own value based on its age, the locality it is situated in, the builder's reputation, size, and amenities offered. Therefore, it is essential to be aware of the total value of your property to ensure that it gives you the desired loan amount when you pledge it. Usually a property of a high value and in a good locality will help you receive loan approval faster, since the lender is likely to consider it low-risk.
Examine the eligibility criteria
Eligibility criteria for this loan will differ from lender to lender. However, you need to understand the criteria before applying for the loan. This will eliminate chances of rejection and ensure you get the loan amount you have in mind. Moreover, when you meet the criteria, it not only increases your chances of approval but also increases the speed at which the loan is processed.
When you take a loan against property from Bajaj Finserv, you only have to meet simple eligibility criteria. You must be a resident of India, over 25 years of age, a salaried or self-employed individual, and a regular source of income. Apart from this, the loan offers various other benefits like instant approval, nominal rate of interest, value-added services, and online application.
Compare various lenders and their interest rates
The interest rate of the loan will play a vital role in determining its affordability and your ability to repay it. So, before you apply for the loan, it is important to compare and review various lenders so that you can choose the lowest interest rate for Loan Against Property. Also, look for flexible prepayment terms as this can make repayment hassle-free and help you clear the loan faster. Remember to look out for additional charges, too, as some lenders may have low-interest rates but may charge you additional fees.
Get an estimate of the amount you need to borrow
It is not easy to borrow the right amount as a loan if you don’t have an estimate in mind. To get clarity, make a list of the expenses you will pay for using the loan. For instance, if you are using the funds to purchase office space, calculate the price of the selected property while adding costs for interiors, necessary equipment, etc. After estimating your financial requirements, review details like your income and monthly expenses. This will help you review your finances and choose a loan amount that meets your needs and caters to your financial situation.
Be aware of the other benefits and services offered by your lender
Your lender may offer you value-added services that enhance the value of your loan. So, enquire about these services to improve your borrowing experience. These services include finding the right property, guidance on technicalities associated with buying a property, and even customised insurance schemes. Being aware of such value-added services will make the loan more beneficial for you.
For instance, Bajaj Finserv offers pre-approved offers for loan products. Not only does this simplify the approval process, but it also helps you save on time. All you have to do is share a few basic details and check out your pre-approved offer.
With these factors in mind, you can ensure selecting the right mortgage loan for your needs and put it to good use too.
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