Know the Factors that Affect Approval For Loan Against Property
With the rising necessities and high demand of living, we are most inclined to borrow some money either from a friend, a relative or a bank. Borrowing money from banks or non-banking financial institutions are the safest way of getting finance. And, if you have a property, then you can mortgage the property loan to get the loan you want.
Additional Read: Fund your Dream Holiday with a Loan Against Property
So, when you approach a lending institution for a loan, the most important thing you need to consider is the interest rate.
Here are the factors that affect the interest rate offered:
1. CIBIL Score – it helps the bank or NBFC judge your creditworthiness. The higher the credit, the lower the interest rate that is likely to be charged – 650+ is considered an ideal score.
2. Lesser loan- if you do not have loans in your name or less amount of loans, you are more likely to get a lower interest rate. Remember, your loan to income ratio is used to decide the interest rate to be charged. One can check the interest rate by using the lap emi calculator.
3. Have your documents ready – It is necessary to keep all your documents handy and available. If anyone of your documents is missing, the loan may not get approved.
When looking for a loan, it is a good idea to use a mortgage loan calculator to help you know the EMI you will pay every month with the help of your loan against property interest rates. Remember, you can take a loan for both personal or business expenses, and if you have a property, you can put it to good use.