The loan against property (LAP) can help you cover all bigger expenses.Yes, right from financing your children’s overseas education or wedding expenses, it can include all.
Yes, the loan against property is a handy financial tool that can help you accomplish all your personal and professional goals.
If you have the loan against property eligibility as set by a lender, you can easily get up to Rs.3.5 crores.
And what’s the most significant benefit of applying for the loan against property? It is the lower loan against property interest rate that you get to enjoy.
It happens because an applicant needs to pledge his/her property to get the loan. Hence, when you need some bigger amount at a lower rate, you can look up to the LAP facility.
However, other than your collateral (property) that lets you enjoy a lower interest rate, some other vital factors also play a role in determining the final interest rate.
Hence, here are some factors that can help you get the lowest interest rates on loan against property easily. Let’s explore.
Tips to Grab Lower Loan Against Property Interest Rates
> Your CIBIL Score
If you have maintained your CIBIL Score by paying all your previous and existing loan and credit card EMIs, then you can reap the rewards. Lenders can reward with a lower loan against property interest rate. Hence, make it a point to ensure a robust Credit Score in the range of 750+ or more out of 900.
Also Read: Top Tips for Boosting your Credit Score
>Your Repayment Capacity
Are you financially sound enough to repay the loan against property that you wish to avail without facing financial roadblocks? If yes, you will need to prove that you are earning well and can repay the loan over the scheduled tenor without facing issues. To do that, you will need to submit your last 3 months’ Salary Slips and bank account statements for the last 6 months to your lenders. You will also need to ensure that you can handle the repayment for LAP even if you have some other debts to repay. Applicants with a decent repayment record can grab a lower loan against property interest rate.
> Your Income and Employment History
Are you earning enough to repay the monthly EMI for a longer tenor? Are you working for a reputed organization and is your job stable? If the answers to these questions are in affirmative, you can get a lower loan against property interest rate. Lenders want to be sure that you will continue to earn enough to clear the EMIs easily.
> The Condition of your Property
How old is your property? What are its present conditions, and disputes, if any? These things can also determine the final loan against property interest rate. Hence, it is better to get a property evaluation done and get to know how much it will fetch if you apply for LAP.
Applying for the loan against property is one of the easy methods to get higher loan amount. You are aware of some tricks to get the lower loan against property interest rate. You can follow it and get to apply for LAP online at affordable rates.
Additional Read: Deal with Interest Rates Hike through Loan Against Property
Bajaj Finserv offers loan against property, personal loans, home loans and other financial products. It can help you go through the entire loan processing hassle-free and quick.
Arwind Sharma is a financial advisor with an experience of more than 7 years. He has worked for topmost financial firms in India and has been a visiting faculty at many reputed institutes in India. Currently based in Gurgaon, Arwind Sharma is a name to reckon with when it comes to financial management for big brands. A post-graduate in business economics, he is an alumnus of Princeton University, USA. During his free time, Arwind teaches children from marginalized sections of society and also work on his blog.