Want Lower Loan Against Property Interest Rates? Consider 4 Points!

Do you have an asset such as property in a major metro city in India? Do you have some vital needs that you would like to cover with a better funding option? If yes, then the answer to your needs is none other than the loan against property (LAP).

Yes, when you go ahead and apply for the loan against property facility, you get to avail a higher loan amount at a lower interest. The offered loan against property interest rate is affordable as your property is kept as the collateral with a lender.
Also, the loan against property eligibility is easy to meet. If you can match it, you can get up to Rs.1 crore if you are salaried and up to Rs.3.5 crore for self-employed.

However, when your property is kept as collateral, it is not the only determining factor to get an affordable interest rate. Yes, many factors related to your age, income, tenor and creditworthiness rule it. Hence, if you wish to apply for the lower loan against property interest rates, you should consider some points.

Points to Consider for a Lower Loan Against Property Interest Rates

1)    Your Age

If you are a young salaried or self-employed individual looking to apply for the LAP, you can easily get it at a lower rate of interest rate. It is because you have more employable years left to repay the loan. What’s more, you can also get a longer loan tenor to repay it. It is not true for people who are on the brink of their retirements. Lenders consider that their income may close or shrink after retirement. Thus, they may not enjoy an affordable interest rate. Also, they may get a shorter loan tenor for a lower than desired loan amount.

2)    Your Income and Repayment Capacity

How smooth is your employment and income history may determine the offered loan against property interest rate by a lender! Hence, you should ensure that you are not a job hopper. Also, it should be your duty to maintain a consistent employment history with a known company. Along with these, you should also ensure that you maintain a strong repayment history for your current loans and credit cards dues. The LAP applicants opting for the loan may get a lower than normal interest rate for maintaining the discussed pointers.

3)    Your CIBIL Score

Your Credit Score is also one of the vital points that lenders check. Yes, before approving your loan against property application, it is analyzed. The CIBIL Score confirms your creditworthiness to your lender. It informs the lender about your past and present repayment records for loans, credit cards and other debt accounts. As a result, if you have maintained your CIBIL Score in the range of 750+, you can reap the benefits. The lender may facilitate you by offering a lower loan against the property interest rate. 

4)    The Loan Tenor

The loan against property comes with a longer loan tenor ranging 2-20 years. Hence, you can always opt for the longest tenor and stretch the loan amount. Therefore, you can pay smaller EMIs and manage your monthly expenses without issues. However, for having a longer tenor, you would need to pay a compounding interest rate. Thus, to avoid paying extra out of your pocket, it is good to opt for a shorter tenor. Yes, you will need to pay higher EMIs, but that will help you save on interest amount. Also, you could also pay off the loan faster and get your property back for another loan.

Some of the easier steps to help you grab the lowest loan against property interest rate are now discussed. You can assess your conditions, needs, and repayment capacity to avail the affordable LAP facility online.

Bajaj Finserv offers pre-approved offers on loan against property, housing loan, and loan for business, credit cards, EMI finance, personal loans and a lot more products. The purpose of such offers is to make all your loan aspects simple and quick. You can share some of your basic details such as your name and mobile number to unlock your pre-approved loan offers today.

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