Loan against property or mortgage loans are high value credit products which can go up to Rs. 3.5 Crore. Consequently, the repayment tenor usually offered on these loans is longer than other forms of secured advances and can stretch to 20 years.
Especially since these financial products involve significantly large monetary obligations on the part of borrowers, customers should have complete knowledge about loans against properties.
Additionally, they should also be aware of the following tips to avail the best offer for themselves.
# Plan Finances: Financial planning ahead of availing a credit helps in deciding the loan amount. Borrowers should chalk out all their necessities ahead to avail of the exact loan amount.
# Maintain Healthy CIBIL: This score suggests the risk involved in lending to a specific individual. Maintaining a healthy CIBIL score ensures that customers get easy approval along with convenient loan against property interest rates.
Must Read: How To Increase CIBIL Score
# Check Requirements: Eligibility, as well as document requirements, should be checked while selecting a lender. Fulfilling them before application ensures faster approval followed by prompt disbursal of the loan amount.
# Evaluate Property Value: Financial institutions offer a maximum of 75% of a property’s value to their borrowers. Consequently, it is important for borrowers to evaluate their property value to avail of higher loan amounts.
# Choose Right Tenor: Opting for a short tenor offers lesser rates of interest payable to the borrowers. Consequently, after proper planning, individuals should opt for the shortest possible tenor to avoid as much interest as possible.
Any potential borrower of a loan against property should follow the above tips to avail of the product easily. Planning ahead also helps in repayment.
