Things to Check Before Applying For A Property Loan

The extended repayment tenure and opportunity to avail a high principal amount of up to Rs.3.5 Crore are the key factors that make a loan against property an attractive option.
 

The first thing that you must check is the loan against property eligibility and if you match it. Once you are sure of your eligibility, you can proceed to apply for a loan against property.

Besides the loan against property eligibility criteria and the required loan against property documents, you need to check these five aspects as well -

  1. The property value- Borrowers can avail loan amounts of up to 70-75% of the current market price of the mortgaged property.
     
  2. Rate of interest- Interest rates influence the amount of EMI that a borrower has to pay. Thus, you should compare the prevailing between Fixed vs Floating Interest Rate.
     
  3. Income- Take your income and EMI amount into consideration to decide if you will be able to repay the loan comfortably.
     
  4. Tax benefits- Borrowers are entitled to avail tax benefits on the loan amount they repay in a financial year and also on the accrued interest. Make sure to check which tax benefits are applicable for you.
     
  5. Additional charges- A borrower must make it a point to learn about the various charges before applying for a loan against property to keep track of unexpected outflows.

Also, after you have checked these aspects, make sure that the loan against property documents required to avail a loan contains valid and up to date details.

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