5 Things You Need to Know Before Applying for a Loan Against Property
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5 Things You Need to Know Before Applying for a Loan Against Property

  • Highlights

  • Understand the value of your property

  • Read about the eligibility criteria for your loan

  • Evaluate your lender and see how you can get the best loan offer

  • Get clarity on the amount that you wish to borrow

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 funds as a flexi loan and secure the funds 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, reputation of the builder, size and amenities offered. It is important 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, having a property with of a high value and in a good locality will help you receive loan approval faster, since the lender is likely to consider it to be low-risk.

Examine the Eligibility Criteria

Eligibility criteria for this loan will differ from lender to lender. However, it is important for you to understand the criteria before applying for the loan. This will eliminate chances of rejection and ensure that you get the loan amount that you have in mind. When you match 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, self-employed and with a regular source of income. Apart from this the loan offers you various other benefits like instant approval, nominal rate of interest, value-added services and online application.

Check Various Lenders and their Interest Rates

The interest rate of the loan will play an important 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 several extra fees.

Get an Estimate of the Amount that you need to Borrow

It is difficult 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 that 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 making a note of your financial requirements, review details like your income and usual 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 assistance with finding the right property, guidance on technicalities associated with buying property and even customised insurance schemes. Being aware of the value-added services that you can make use of 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 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 that you select the right loan against property for your needs and put it to good use too.

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