Applying for the loan against property (LAP) has become quite effortless. You can easily apply for the facility online, and get access to a huge amount of money. The entire loan process can be concluded online on the lender’s website.
Are you willing to apply for the loan against property facility? Then, being a property owner, you would need to consider many aspects. Being aware of many terms will help you become aware of all that will ease off the loan application process.
Thus, before you apply for the loan against property and get money to pay for your personal and business expenses, you should consider some terms. Let’s have a look:
Loan Against Property Terms/Factors to Consider
The Value of your Property
Before you go ahead and apply for the loan against property facility, you should be aware of the real worth or monetary value of your property. You may need a loan of around Rs.40 lakh, but the value of your property could be only Rs.20 lakh. Thus, applying for the loan against property facility won’t help you. As a result, you will need to consider other finance options to cover your remaining expenses. Being aware of the worth of your property is a vital aspect that you should consider.
Know About the Loan Against Property Interest Rates
The loan against property interest rate is basically lower than other loans as the loan is borrowed against property. The lender has the possession (not being the owner) of your property, and, that leads to a lower loan against property interest rates. As a result, you can get a higher loan value at a lower interest rate. Thus, before applying for it, check the loan against property interest rate being offered by a lender.
Your Income and Repayment Capacity
Most of the people apply for the LAP facility when there is a requirement for a higher amount of money. The approval of for the same will depend on your income, and repayment capacity. You can get a tenor ranging between 2 to 20 years as per your income, EMI scheme and another loan against property eligibility conditions. Hence, you should first assess your income and repayment capacity for the LAP before applying for it. Banks approve the loan against property application of such people mostly who are drawing decent monthly income. It assures the lenders that there will be no defaulting as far as the EMI payments are concerned.
Loan Against Property Eligibility and Documents
An applicant should also consider the loan eligibility and the required documents before applying for LAP. Being aware of such aspects processes your application faster. As a result, the lender won’t have to ask for extra or missing documents.
If you are unable to get the loan against property eligibility for a higher loan amount, then you can bring along a co-applicant and apply jointly. This way, you can get the approval for a larger loan amount. However, before approving the loan amount, the lender will analyze the repayment power of the co-applicant.
Ask your Lender about Fees Involved
Apart from the loan against property interest rate, there are some other changes that you need to take care of. These are processing fees, agent cost, sales tax, pre-closure and prepayment charges. To know more, you should be sure to read the terms and conditions of the LAP facility.
Some of the major LAP terms that you need to consider before applying for it is now revealed. By going through it, you can be sure of what to consider and march towards an easy loan application.
Bajaj Finserv is here to offer some pre-approved deals on loan against property, home loans, personal loans, business loans and a lot more. If you want to go through the entire loan procedure easily and fast, you can go for such offers.