While applying for a loan against property, it is important to identify the best lending financial institution to avail good deals on loans. For this, the most important factor is to compare their property loan interest rate on offer. The interest outgo can be assessed using an online EMI calculator. However, there are other factors to consider as well before choosing the most suitable lender.
Tips to choose a lender to avail property loan at best interest rates
The important tips an applicant should remember before getting a loan against property at good interest rates are as follows:
Compare interest outgo using an EMI calculator
The most important thing to do before selecting a lending financial institution is to calculate the interest amount using an EMI calculator. A borrower can enter the required loan amount, check the property loan interest rate offered and a suitable tenure to compute the total cost of loan. Doing so will give the borrower a clear insight as to which lender offers loan against the most favourable terms.
Check for processing fees and other associated charges
Read the terms and conditions of the lender to check for any penalties or processing charges. An applicant can also avoid penalties by paying EMIs within due dates.
Take note of the tenor available
It is common knowledge that longer the loan repayment tenor, higher will be the total interest and number of EMIs payable. Hence, it is always advisable to choose a financial lender offering loans for a convenient tenor.
Things to remember before availing loan against property
The main things an applicant should keep in mind before applying for a loan against property are as follows:
Shortlist a lending institution
This is the most important thing an applicant must remember while availing property loans. They can do this by comparing the terms of different lenders online.
Check loan eligibility using a calculator
Borrowers can use a property loan eligibility calculator to know the amount of loan one is allowed to take. This way the chances of loan rejection will reduce.
Plan finances and calculate total EMI
Planning a proper financial budget is important before loan application to avoid missing out on loan EMIs. Additionally, it will give an idea about the total interest and EMI, especially if an EMI calculator is used.
Keep property documents handy
Keeping property documents handy will again avoid chances of loan rejection and avoid unnecessary delays or hassles in the process.
Simple steps to apply for a loan against property
The step-by-step processes by which an applicant can avail property loan are as follows:
Step 1: Visit the website having the portal to apply for a loan against property.
Step 2: Go to the application form and click on the ‘Apply Now’ option.
Step 3: Fill in all the basic details like name, address, bank account number, contact number, email id, DOB, etc.
Step 4: Verify by generating an OTP.
Step 5: Submit soft copies of all the required documents.
Step 6: Enter the required loan amount, tenor, and rate of interest.
Step 7: Submit this application form and wait for approval.
Loan against property interest rates
The property loan interest rates are as follows:
For self-employed individuals:
Fresh loan against property rate: 9.75% to 18.00%
Balance transfer rate: 9.85% to 18.00%
Floating reference rate: 15.85%
For salaried individuals:
Fresh loan against property rate: 10.10% to 18.00%
Balance transfer rate: 10.20% to 18.00%
Floating reference rate: 15.40%
Therefore, now any applicant will be able to avail some of the best deals including attractive property loan interest rates, and simultaneously choose a suitable lender. The availability of various online calculators has only made the task of comparison easier.