Loan Against Property Interest Rate

Things to Keep in Mind Before Availing Loan Against Property

Customers who are new to the process of availing a loan against property can keep the steps mentioned below in mind:

1. Check your Eligibility

Customers can make use of the loan against property eligibility calculators prior to applying for the loan. The eligibility calculator will take into consideration details such as one's income, the value of the property and several other factors. Using the eligibility calculator, the customer can assess the loan amount he/she will be eligible to avail.

1. Calculate the EMI

As part of planning one's finances prior to applying for the loan, one should calculate the EMI amount and know how much he/she would have to set aside from their monthly net income to pay for the monthly installments.

1. Keep the property records in place

The customer has to ensure that all the property certificates are in place and are in his/her name to avail the loan. Some of the property certificates that the lender would request to submit are the sales deed, lease deed, registration certificate, House Tax Return certificate, approved building plan that has been attested by the Municipal Corporation, etc.

1. Shortlist lenders based on their offers

Make a comparative analysis between lenders offering a favorable loan amount relative to the interest rate. While analyzing, check for the fees and charges being levied by each lender, along with the loan tenure being offered.

Customers can calculate their eligibility and the EMIs on the website of BankBazaar and make a suitable decision on the loan amount to be availed and the monthly installments based on their finances.

Loan Against Property Process in Simple Steps

Listed below is the general process to avail a loan against property:

1. Choose a reputed lender offering the best loan against property deal in the market, one that suits your finances.
2. On the website of the lender, fill in the online application form. Enter your personal details, income and any other required information.
3. Enter the details of the loan you'd wish to avail - loan amount, tenure, etc.
4. Based on the information that you have mentioned, the lender will calculate your eligibility.
5. The lender will then collect the required documents and begin the verification process of your documents as well as that of the property and carry out the property valuation process.
6. If the lender is satisfied at the end of the verification process, then the loan sanction letter will be sent to your postal address.
7. Prior to the loan disbursement, you will have to submit the original documents of the property.

Loan Against Property EMI Calculator

To plan their finances in advance, customers can facilitate the use of the EMI calculator tool to know how much they would have to set aside every month to repay the loan. The EMI calculator takes into consideration factors such as the loan amount availed, the interest rate applicable, the processing fee, and the tenure.

Tips to Reduce the Loan Against Property Interest Rate

Give below are some key points one can take into consideration to reduce the interest rate of a loan against property:

1. Find out the applicable interest rate for different loan slabs. For example, it is quite possible that the interest rate will be lower for a loan in the Rs.30 lakh range than one in the Rs.20 lakh range.
2. Choose the tenure accordingly as it has a direct effect on the interest rate that will be offered by the lender.
3. Look out for lenders offering interest rate offers on loans.
4. Do not make multiple applications with various lenders as every application rejection will reduce one's CIBIL score and a low CIBIL score will lead to a higher interest rate offered by the lender.
5. Opt for a loan amount that is within your affordability.

Documents Required for Loan Against Property

Listed below are the general documents that the borrower will have to submit:

1. Identity proof - Passport, Aadhaar card, PAN, etc.
2. Address proof - Aadhaar card, Driving License, Voter ID card, etc.
3. Form 16
4. IT returns certificate
5. Bank statements
6. Salary slips
7. Income proof documents
8. Property documents - Sales deed, Registration certificate, Property tax receipt, building plan that has been approved by the Municipal Corporation, etc.

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