Going for a loan against property seems to be a much more reasonable choice than choosing an unsecured loan. However, the requirements for such loans isn’t limited to owning a property but requires you to have a good CIBIL score, regular income source, and other similar factors.
Here are a few things you should keep in mind the next time you apply for a loan against property.
Conduct Extensive Research
You cannot trust any random person with your details and pledge your property to them. You need to conduct an extensive amount of research to ensure you find the best offers available for loan against property online.
While salaried employees can get a loan a maximum amount of Rs.1 crore, self-employed individuals may apply for loans amounting up to Rs.3.5 crore.
The most significant mistake people make these days is sticking to the first loan offer that gains their attention. They forget to research and miss out on the many better offers that they could have applied for instead.
You can use an online loan against property calculator to find out which website is offering you the best deal!
Check Your CIBIL Score
Your CIBIL score can quickly determine your credibility and repayment history. The lender can also know of any existing debts that could act as a hindrance to getting his payments later on.
You need to have a CIBIL score of 750 or above to be able to apply for a loan. Besides, applying for a loan with low CIBIL score can bring down your score even more.
Check Interest Rates and Other Charges
You need to be aware of all the charges that you might need to pay as part of the loan requirement. The interest rate is inarguably the most critical aspect of a loan and affects the total amount that you have to pay monthly. Furthermore, there can be some extra charges that might not be mentioned by the NBFC on the brochure or open sheets. However, you need to be aware of such costs and calculate them as part of the loan as well.
Failing to identify any hidden charges can raise questions and, thus, make you question your decision later on. To avoid this, make sure to conduct additional research to find the most pocket-friendly EMI option available for your property.
Besides, if you pledge property of a higher value than the loan, you can even negotiate the interest rates and adjust them as per your requirements.
Plan before you apply
You need to be aware of your abilities and needs to ensure you decide on an EMI amount that doesn’t make you restless 24×7. Not only will you have to take care of your daily needs, but make timely, monthly payments to the NBFC as well. Ignoring this might create problems for you and make you financially unstable in the future.
Therefore, make sure to identify your needs and see if taking the loan is an adept choice. Once you plan how you’re going to repay the loan amount, you may apply for the loan.
We recommend you find an NBFC that offers you loans, who’s EMIs don’t need to be paid back in massive amounts and are of a rather comfortable amount when compared to your salary.
However, you need to be aware that lenders are quite strict about their loan and repayment policies. Therefore, make sure to pay back on time, or you’re guaranteed to have some NBFC officials at home.