apply for the property loan

Are you in the desperate need of a large amount of money? Do you have a property in some specific cities? You can look up to the loan against property (LAP). As the name suggests, the loan against property is offered when you keep your asset like property as the collateral to get the loan.

Since the lender always has the collateral, it offers the loan against property at a lower interest rate. Hence, the lower loan against property interest rate lets you manage the loan easily with smaller EMIs.

Nonetheless, when it comes to loan against property interest rate, the evaluation of the property is not the only factor. The lenders consider many more factors related to your income, financial profile and more.

Today, we have clubbed all those key factors together. This way, you would be able to know more and apply for the property loan at a lower rate. Let’s get started now!

What Calculates the Loan Against Property Interest Rate?

  1. The Evaluation of your Property

While calculating the loan against property interest rate, the current price of the property matters. Lenders will carry out an extensive evaluation of the ‘to be mortgaged property’ before offering the final LAP interest rate. The final worth of the property will be based on its current price and not at what you bought it. Lenders also look how old is the building, its present condition, and any disputes.

  1. Your CIBIL Score

Here is another significant feature that a lender will look up while calculating the loan against property interest rate. It is your CIBIL Score. The Credit Score is a 3-digit number existing between 300 and 900. It gives the lender the information about your creditworthiness. How good or bad you may have managed the lender will now consider your existing or previous loans and credit card outstanding. You will enjoy the benefit of having a robust CIBIL Score if it’s 750+ or more. If it’s below that mark, either your application may be rejected, or you may get the loan at a higher rate.

  1. Your Repayment Capacity

Lenders want to know if you have the required repayment capacity for the desired loan. To do that, you should be earning a decent income and should not have too many existing debts on your head. Once you prove that you have the required repayment capacity, the lender may approve the loan at a lower interest rate.

  1. Your Employment History

Are you working for a reputed company or have a long-standing employment history? Even then the lender may offer the loan against property at a lower rate. It is because the lender may think that when you are working for a reputed company, you may not find it tough to make timely payments. Also, loan applicants with a consistent employment history are loyal towards their jobs and debts. As a result, such individuals may get the benefit of a lower loan against property interest rate.

The loan against property can help you grab up to Rs.1 crore for salaried and up to Rs.3.5 crore for self-employed professionals at a lower rate. If you have the required loan against property eligibility and documents required, you can apply for it online.

Also, you may also follow the discussed tips and get the loan against property interest rates at affordable prices. As a result, you may fund your needs without stressing your pockets.

Bajaj Finserv offers pre-approved offers on loan against property, personal loans, home loans, business loans, and more. It is to simplify your loan processes and make it hassle-free and fast. After you share your basic personal details such as name and mobile number, you can check out your pre-approved loan offers right away!

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Sonam arora
I am Sonam Arora. I am professional guest blogger and writer. I am in this field from last 2 years.

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