A property loan is a secured loan wherein immovable assets like property or land is pledged as the mortgage. Here, the borrower must be the owner of the property.

A loan against property is a great way to finance hefty expenses. But many borrowers tend to overlook factors that play a huge role in a LAP’s affordability. These are as follows:

Things to Keep in Mind When Taking a Loan Against Property

• Ensure that you take up the lowest possible tenure based on your financial standing. A lower tenure ensures that the amount paid in interests is as low as possible. 

• Property loan interest rates are slightly higher than standard loans. However, borrowers need to negotiate for the lowest possible interest rate based on their credit card score. 

• Most property loans have a processing fee attached to them. The fee is usually 1% of the amount borrowed. Therefore, when deciding to undertake this loan, make sure you have this amount ready. 

• If you are in desperate need of funding, LAP’s can be tricky to navigate through. Unlike instant personal loans, a LAP takes 2-3 weeks for processing and disbursal. So, ensure that you submit all the requirements correctly and on time. 

Making a financial decision is a big deal, and it is important to ensure that you have all bases covered to secure your financial health in the long run. Covering all aspects of loan taking can enable you to pay off your debt much sooner. Get started now and find a lender that offers competitive interest rates and full transparency!

Must Read: All About Loan Against Property