If you believe you can get a work machine or purchase that office space with a loan against property, then you are right! A secured loan like a loan against property can make your dreams a reality in the twinkle of an eye.
A loan against property is one of the best ways to meet a variety of needs. Firstly, because loans against property interest rates are fair. Also, the process of learning how to apply for a loan against property is simple.
In this article, you’ll learn how to avail the best loans against property in India.
How to Apply for a Loan Against Property
Here are the steps to follow to apply for a loan against property.
Check That You Are Eligible
There are always eligibility criteria for all loan types, and a loan against property is not exempt. For most financial institutions, the eligibility criteria for loans against property include:
- You must be an Indian residing in India.
- You must be a salaried or self-employed individual with a minimum age of 25 years, and maximum age of 70 (with 70 being counted as the age at the time of loan maturity).
- Your credit score must not be less than 725.
Gather Your Documents for Submission
The process of apply loan against property is not complete until you have submitted all the necessary documents. You must apply online and wait for your documents to be authenticated by the lender, and then review the contract to be sure that you agree with the terms of the loan offered to you.
Use Loan Against Property EMI Calculator
Just before making your decision about taking a loan against a property, you should find out the equated monthly instalment (EMI) you’ll pay on the loan. This will ensure you set aside a down payment from your monthly income and ultimately help you to begin the journey on a good note.
Another benefit of using a loan against property EMI calculator is that it ensures you are able to get a loan against property with the most favourable interest rates.
Loan Against Property Interest Rates
The ideal interest rates for loans against property can range from something as low as 6.70% to something as high as 14.50%. Of course, these interest rates are dependent on several different factors. Some of these factors are:
CIBIL Score
Apart from the fact that a CIBIL score below 725 is not advisable if you want to apply for a loan against a property, your CIBIL score also has a way of telling whether your interest rate would be high or low.
Property Value
Tendering some properties to indicate their value during the loan against the property application process helps you to get a low-interest rate.
Applicant’s Profile
Your financial profile is always something of interest to lenders. Checking out your income per month, your credit score, and your age, among others, helps them conclude the interest rates.
How to Get a Low Loan Against Property Interest Rate
Knowing that all these factors affect the loan against property interest rate is one thing and doing everything it takes to get a low interest rate is another. Here are some great ways to help yourself to a low interest rate.
Improve Your CIBIL Score
Since you already know that lenders check CIBIL scores before approving a loan against a property application, you should take advantage of it. So, what do you do? You must ensure that your CIBIL Score is impressive. A CIBIL score of 725 and above should get you an approval.
Make a High Down Payment
Making a huge down payment even before you begin the monthly repayment of your loan is certainly a wise way to get a low interest rate.
Make Regular Payments
When your repayment process is regular, you quickly become a favourite for lower and better interest rates. To achieve this, the ideal thing to do is repay your loan against the property through a fixed EMI. As stated before, you can get your EMI by using the loan against property EMI calculator.
Final Thoughts
While a loan against property is a great way to accomplish many life goals, several people are unable to get one because they don’t follow the right steps. However, it doesn’t have to be that way. You can have an easy ride through your application process if you press the right buttons. As long as you follow the steps above, you are sure to be on good terms with your lender.
