Things to avoid when availing a loan against property

A loan against property is an ideal way forward when you require substantial funds for achieving personal or business targets. It offers a high loan amount at nominal interest rates since it is a secured loan. For example, the Bajaj Finserv Loan Against Property gives you access to funds of up to Rs. 10.50 Crore* based on the value of the property you pledge and the eligibility. It comes with benefits like easy prepayment options, flexible tenor, and quick processing.

If you are looking to fund your child’s education, renovate your home, or even expand your business, a Loan Against Property can be your best bet. With Bajaj Finserv Loan Against Property, you get a huge loan amount at low interest rates and flexible tenors that fit your budget. Plus, unlike personal loans, the secured nature means better terms. Why juggle multiple loans when you can unlock your property’s value for all your financial goals? Get a loan of up to Rs. 10.50 crore with the option of interest-only EMIs during the initial tenure.

This makes a loan against property the new standard for long-term debt. But, before you plunge in, here are a few things to avoid.

1. Misrepresenting the property value in your application

There is no point in showing a higher value of your property in your loan application, as the property will be evaluated by the lender later. Ultimately, the loan amount sanctioned will depend on the actual market rate of the property.

2. Going with a lender without interest rates comparisons

Before applying for a loan against your property, you should compare the interest rates of various lenders as the interest affects your EMIs and determines whether you can repay the loan easily and on time. Do thorough research and choose a lender who offers affordable interest rates and flexible repayment terms. Additionally, check for other hidden costs or fees that a lender will apply on your loan. Finally, pick a lender that offers suitable loan terms and an affordable interest rate.

Did you know: One of the biggest hassles with loans is rigid EMIs and hidden charges. But with Bajaj Finserv Loan Against Property, you get flexible repayment options including easy prepayments. This means you can manage your finances without stress and pay off your loan faster if you want. It is like having a financial safety net while making the most of your property’s value. Get a loan of up to Rs. 10.50 crore with the option of interest-only EMIs during the initial tenure.

3. Choosing a higher tenor when you can repay sooner

Evaluate your financial position and choose a tenor that works best for your needs. Don’t opt for a longer loan tenor simply because you are offered one. A longer tenor implies that you end up paying more interest.

4. Taking a loan without negotiating with the lender

Before taking the loan, always try negotiating the terms and conditions with the lender. All charges, including interest charges or processing fees, can be negotiated. So focus on negotiating with your lender for getting the best deal.

5. Not paying attention to prepayment and foreclosure charges

When taking a loan, ensure that you read all the documents carefully to understand the prepayment and foreclosure charges. These charges are levied on you if you decide to make payments above and beyond your EMIs or want to repay the entire loan before the end of the tenor. Since making part prepayments can reduce your interest liability, choose a lender who offers none or minimal charges for this facility.

6. Not preparing for a slightly longer processing time

Typically, loans against properties can take longer for approval than a collateral-free loan. This is because the lender needs to determine the value of the property before sanctioning the loan. However, with Bajaj Finserv, you are assured that the entire process will be completed in a few days, making this a convenient and comfortable option.

7. Disregarding your credit score

Just because this is a secured loan doesn’t mean that your credit score is irrelevant. On the contrary, your credit score is an important factor to determine whether you will get the loan, what your loan sanction will be, and what your interest rate will be. So, keep regular track of your credit score and ensure that you pay all your dues on time to keep it high.

8. Not knowing your lender’s usage restrictions

Some lenders have restrictions on how you can use the loan amount. Ensure that you read all terms and conditions so that any usage restrictions do not bind you.

With a mortgage loan, you can enjoy benefits such as large-sized loans, flexible tenor, and quick processing. If you keep the above-mentioned measures in mind, you can be sure of getting the most affordable loan.

When personal or business needs require a substantial sum, a loan against property can provide up to Rs. 10.50 Crore* based on your property’s value. Unlike unsecured loans, this option lets you access a high loan amount at affordable interest rates. With Bajaj Finance, quick processing and minimal paperwork make your journey smooth. So why settle for less when your property can unlock so much more? With a Bajaj Finserv Loan Against Property, you can unlock high-value funding at competitive interest rates. Whether it is for medical emergencies, business growth, or personal goals, your property empowers you to access the resources you need with ease. Don’t wait—Get our loan against property of up to Rs. 10.50 crore and turn your asset into a solution!