If you are looking for a lump sum amount to finance your business, look no further than a loan against property. A property loan is a good idea to finance any requirements for a lump sum amount of money. The lender will consider your property as security and give a loan at an affordable interest rate. To get a loan against property, there are few rules you should abide by.

Rules to follow while taking a loan against property –

1. Making repayments timely

Whenever borrowers do not make timely payment, lenders usually levy a penalty charge. This penalty charge increases the cost of borrowing for the borrower. In addition to that, many late EMI payments can also lead to a reduction in the credibility score. So, all borrowers should ensure that repayments are made in time and according to the interest rate decided. 

2. Read terms and conditions carefully.

There is a considerable amount of documentation required when availing a loan. It might all look not very interesting, but it makes sense to read all of it thoroughly to avoid any surprises in future.

It is also advisable to deal with a reliable lender and a credible agent not to experience any surprises regarding charges and repayment in future. 

3. Borrow based on your financial situation

As a rule, no Equated Monthly Instalments (EMI) must be more than 65% of your net income. Therefore, if you are considering applying for a more significant amount for a loan, your repayment capability as per your net income should match it.

These were a few rules borrowers should follow if they are looking to get a property loan. We hope you undertake responsible borrowing and repayment practices while availing a loan.

Must Read: All you Need to Know about Loan Against Property Overdraft Facility