Main Factors Consider Before Opt for A Loan Against Property
Due to affordable loan against property interest rates, such credits can be highly beneficial to finance your child’s education, handling wedding expenses, unexpected medical bills or even to expand your business.
The features and benefits of loan against property is are available for both self-employed and salaried customers. Considering some factors of these loans is essential before applying.
Factors to keep an Eye on Before Opting for a Loan:
* Loan amount: The amount you avail loan against property depends on the house’s market value. Typically, 75% - 90% of the present value is issued as loan. However, it could differ from one financial institution to another.
* Tenure: The period of loans against property can stretch from 15 to 20 years, depending on whether the applicant is self-employed or salaried. Although the tenure may have an impact on the rate, you must choose according to repayment convenience.
* Rate of interest: Being a secured loan, the mortgage loan interest rate are quite affordable. Lenders offer two types of interest rates with these loans – floating and fixed.
* Processing and disbursal: Quick approval and disbursal are two of the highlight of these loans. Hence, such loans are ideal for medical emergencies.
Additionally, you must provide with every document like KYC documents, bank account statement, proof of address, property documents, income tax returns, etc. when applying. Lastly, do make sure to check the charges like processing fees, mortgage orientation fees, EMI bounce charges, penal interest, etc. before applying.
