Timely repayment of a loan is necessary to maintain a healthy credit history. In the case of loan against property, repayment becomes an even bigger concern, since an inability to clear this debt on time can lead to losing your mortgaged asset.
Therefore, here are a few simple tips to follow to make such loans affordable.
- Pick The Longest Tenor
Loan against property is one of the few forms of credit that offers flexible tenor options. You can choose to repay a loan over a 20-year period as well. Longer tenor significantly reduces your EMI burden, making this property loan repayment easier.
- Choose Between Fixed & Variable Interest Rates
During a loan against property process, you will have the opportunity to pick between fixed interest and variable interest. The former leads to fixed EMI payments throughout your loan tenor.
However, with variable interest, the rate depends on market conditions. If the market performs well, your interest rate is lowered, leading to smaller EMIs, and vice versa.
- Compare The Various Loans Available
Numerous lenders today offer LAPs at varying interest rates and terms. You need to look for the most suitable mortgage loan depending on your financial condition.
- Opt For An Insurance Policy Against The LAP
An insurance policy can help repay the remaining sum if you somehow fail to clear this debt on time. It will ensure you do not lose your mortgaged property.
Learn about the effective ways to repay your debts for a hassle-free repayment procedure.