How to safely take loan against property?

Having one’s own property is a great advantage in these times. The reason is that since property is a liquid asset, one can use it to meet their financial expenses. There are two ways in which the liquidity of the property can be utilized. The first one is to sell the property. But this means that property no more belongs to you and you end up losing your liquid asset. The other, much better way is to take loan against property. By taking loan against property, not only do you get to satisfy your financial needs but you also retain your property for future use. Also, you can take home loan in Delhi or business loan in Delhi against property. Since these are secured loans, you get lower interest rates and easy approval.

When you go to a lending authority, following factors are considered while disbursing loan against property.

1. The reliability of income so as to ensure that you’d be able to pay back EMIs consistently.

2. Monetary value of the property in the market.

3. It is also important to know whether a property is registered or not.

If the following conditions are satisfied, the loan amount is disbursed to the concerned person.

But merely getting the loan approved is not enough. There are some things that you need to take into consideration when you are taking loan against property. Let us take a look at some of them.

Know how much you can repay

The first thing you ought to do is get your property evaluated. Depending on that, you can get a loan worth 50% to 90% of your property’s market value. Now, you can use different EMI calculators online to calculate the best suitable EMI for you. Don’t go for too high EMIs as they might cause financial troubles later.

Go short term for tenure

Even though long-term tenure is easier on the pocket in the short run, over time you’ll end up paying a lot of extra money as interest. Therefore, if it is financially feasible for you, prefer short term over long term tenure. If your loan is flexible, you can later change the tenure according to your financial situation in the future.

Make timely instalments

Don’t become a defaulter. Not only does it make you look bad but it also means that you have to pay excess money as fine for late instalments. Put your other expenses aside, curtail your luxuries a bit, but ensure that you pay your loan on time. If you keep becoming a defaulter, you’ll end up hurting your credit score and it’ll cause you future problems if you want to avail other loans.

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Created on Jun 16th 2020 02:54. Viewed 232 times.

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