A loan against property is a type of loan that is provided against both residential and commercial properties. However, no matter how exciting this prospect might seem, there are a few things you must keep in mind before getting a loan against a property. Let us have a look at each of these factors:

●     Value of the Property

Before you can avail of a loan, NBFCs or other lenders will evaluate the current market value of your property. The loan amount sanctioned will be nearly 70-80 per cent of the property’s total value. However, this will vary according to the lender. The eligibility criteria of a loan against land will also differ from one lender to another.

●     Interest Rate Provided

The interest rate of a loan against land is lower than the interest rates for personal loans. However, it would help if you thoroughly researched the interest rate provided by different NBFCs.

●     Tenure Offered

Most lenders provide a long tenure to borrowers for loans against property. However, like the loan against property interest rate, the tenure period differs from one lender to another. Most lenders offer up to 15 years of tenure. Therefore, keep your EMIs and tenure in mind before selecting a lender. 

●     Keeping All Property-Related Documents Handy

One of the most significant factors which might hinder your application process is inconsistent property documents and false ownership documents. So, make sure you have well-defined and clear property ownership details to avail of a loan.

Must Read: What are the Document required for taking a loan against property?