Preparing for an unplanned financial shortage helps borrowers avoid straining their budget in due time. Such situations may often force them to liquidate their assets, and hence, drain any chances of savings. During such crises, going for credits like loan against property can be an ideal option. The flexible and extended tenure along with features like loan against property instant approval provide borrowers with the benefit to avail a loan at the earliest.
However, considering that this is a significant financial decision, here are a few things borrowers need to look for while opting for this secured loan.
1. Compare The Rates Of Interest:
While borrowers have an option to choose between fixed and floating interest rates, going for NBFCs which offer a lower rate of interest is mandatory. Interest rates have a significant impact on the monthly instalments towards loan repayment. Affordable EMIs not only eradicates unnecessary strain on the budget but also ensures borrowers do not default on their property loan.
Thus, individuals need to make a quick comparison among leading financial institutions in the market and go for the one which offers a lower rate of interest on both floating and fixed types.
2. Ltv (Loan To Value) And The Required Credit Amount:
In case of loan against property in India, the credit amount acquired depends entirely on the current market price of the property to be mortgaged. Lenders are more than willing to pay up to 70-75% of the mortgage’s market value despite considerably lower credit score of the applicant.
Thus, borrowers should make a quick assessment of the net worth of their mortgage and then look into the required credit amount. Approach a financial institution which offers higher LTV along with loan against property instant approval and quick disbursal.
3. Look Out For Credits That Come With Borrower-friendly Features:
With many NBFCs bringing customised financial products in the market, borrowers can now choose a loan that caters to their specific requirements. Under such circumstances, it is essential that borrowers consider the features before availing one. They should go for credits that come with borrower-friendly loan against property features like –
● High-value credit amount. Reputed lenders usually offer up to Rs. 1 Crore for salaried borrowers and up to Rs. 3.5 Crore for self-employed individuals.
● Hassle-free balance transfer facility at competitive interest rates
● A simple loan application and disbursal process
● A flexible loan against property tenure of up to 18 years (self-employed) to 20 years (salaried).
Lenders like Bajaj Finserv bring customized Loan Against Property to help individuals fund bigger expenses. Two of its features include:
1. Easy-to-meet Loan Against Property eligibility criteria-
− Citizens of India residing in any of the cities specified by the lender.
− Employed in a private or public sector or an MNC and having a regular source of income
− Between 33 and 58 years (salaried); 25 and 70 years (self-employed).
2. Minimal Loan Against Property documents required – This includes KYC documents, address proof, latest salary slip, bank account statement of the last 3 to 6 months, IT returns, and copy of the documents for the mortgage.
Apart from these, Bajaj Finserv brings a simplified and less time-consuming loan availing process with their pre-approved offers. These offers are valid on several financial products including secured loans like home loan, and unsecured loans like business loans, personal loans, etc. Look for your pre-approved offers by submitting a few essential details only.
4. Charges involved:
Many lenders fail to provide their borrowers with the required transparency when it comes to additional charges (processing fees, foreclosure charges, statement charges, etc.). These account for unforeseen expenditure and take a toll on the borrower’s budget. Thus, borrowers need to inquire about such fees and opt for NBFCs that offer nominal charges.
Additionally, borrowers looking to invest their credit amount in purchasing or constructing residential property must remember that they can avail tax benefits under Section 80C and 24(b) on both principal and interest rates. Look into NBFCs, which provide their expert guidance on this.
Ensure to possess a comprehensive idea of how a loan against property process and make an informed decision. Meet the requirements properly and enjoy fast loan against property instant approval and disbursal with the most reliable lender in the market.