Common Mistakes to Avoid When Borrowing a Property Loan

Even though most of us are cautious about saving a portion of our income on a regular basis, there may still be times when you need more funding than you currently have.

At such times, you will need a large body of funding, and often – immediately. Going broke to dip into your savings isn’t always possible, but you have other fundraising options available to you.

We’re not talking about personal loans, a go-to option for many people who need funds with no end-use restrictions. Although personal loans enjoy immense popularity, they are not known for their cost sensitivity. These penalties are unsecured, accruing a high interest rate and costing borrowers much more.

However, borrowing funds for an emergency does not have to be an expensive affair. People who need large sums to meet personal expenses can also consider taking advantage of a property loan at much more nominal rates because it is a sanction of secured loan.

The current interest rate for home loans starts at 8.60%* for eligible salaried and professional applicants, which is comparatively lower than that of a personal loan. The benefits don’t stop there – people in need also have access to funds as high as Rs. 5 Crores, and even more depending on their eligibility. Personal loan penalties, on the other hand, usually range up to Rs. 25 Lakhs, at best. Moreover, like a personal loan, the home sanction loan also has no end use restrictions, which makes the deal all the more attractive.

Essentially, a loan against property is a versatile sanction with all the benefits of a personal loan but with more options at a lower cost of borrowing.

Borrowing tips for loan seekers against property

Availing a loan against property is extremely easy and hassle-free for applicants these days, ensured by the lenders’ easy eligibility criteria. The eligibility parameters set by the lenders are essential to sanction the loan amount so that the applicant profile is verified as low risk and creditworthy.

To help you improve your profile and your application before applying for a property loan, we have a list of tips borrowers should consider to increase their chances of quick approval and disbursement – to meet any financial need you may have. they might have. This exercise can help potential applicants avoid common mistakes when applying for a property loan and make the process seamless.

  1. Compare and analyze lender rates

Just as you must meet the lender’s eligibility criteria, you must also ensure that the lender’s offers, primarily its loan against mortgage interest rate, match your needs. Finding a lender whose terms and policies are workable for you will naturally guarantee easy loan eligibility.

To help you in your research, you can use a EMI Loan vs. Property Calculator which projects your provisional EMI to pay based on the following factors:

  • The principal amount
  • Preferred repayment term
  • The lender’s current loan against the property’s interest rate

There is no cap on the number of times you calculate the result, so you can adjust the variables as you wish and use it to compare different lenders rates to the desired amount to see if the EMI to pay is close at hand. This will not only help you assess whether the lender is the right person for your financing needs, but will also help you prepare an approximate repayment plan in advance.

  1. Choose custom repayment options

Lenders offer flexible repayment options to eligible borrowers to help ease their repayment burden. Consider customizing your repayment plan based on your financial goals and ability to repay so that your repayment journey isn’t tedious or difficult to follow.

This not only eases your repayment obligation, but also ensures that you are not at risk of delaying or missing your EMI payment cycle.

Lenders offer up to 18 for repay a loan on the property, allowing borrowers to pay the amount at their own pace. Choose a tenor that emphasizes savings and gives your EMIs affordable prices.

  1. Pay close attention to loan terms

One important aspect that many applicants overlook is the loan terms and lender-specific policies that come with the loan against the property. Although most of these are common, some of them may be important for you to note, including:

  • Late fee
  • Check bounce fees
  • Partial prepayment and foreclosure fees

Final Thoughts

Once you are sure of your loan request, apply for a loan on the property on terms that suit you. Property loans help borrowers with the costs of business expansion, education costs and renovation costs, among other things, ensuring that shortages of funds do not get in the way of your dreams and dreams. needs.

Dorothy H. Lewis