A financial emergency can occur any time; one may need substantial funds for medical purposes or business expansions. In such situations, a loan against property comes in handy since it comes with no end usage restriction and is available at low-interest rates.
However, to avail of the best loan against property interest rates in India, borrowers can follow the ways mentioned here.
How to avail the best loan against property interest rates in India?
Here are a few ways to avail the lowest interest rates on a loan against property:
- Maintain a good financial profile
One of the primary factors affecting the property loan EMI is the borrower’s profile. This implies the borrower’s age, monthly income, place of residence, or whether he/she is a self-employed or salaried individual.
For example, lending institutions will charge a higher interest rate to someone who is nearing his/her retirement. In contrast, they will charge lower interest rates to young individuals with many more years of service left.
Moreover, the borrower’s source of income also plays a big role. An individual with fluctuating and irregular income will have to pay higher interest rates than a salaried employee.
- Ensure a high CIBIL score
The most helpful way to keep EMIs low is by maintaining a high CIBIL or credit score. For example, the average CIBIL score for a property loan that a borrower must maintain should be 750 or higher. Keeping this CIBIL score will ensure that the borrower gets the loan quickly.
- Opt for a suitable loan tenor
The property loan tenor also affects the interest rates charged on it. This is because the loan against property loans is a long-term financial commitment requiring borrowers to pay a fixed sum as EMI every month. Hence, the shorter the loan tenor, the higher the amount of EMI a borrower must pay. On the contrary, a longer repayment tenor reduces the EMI. Nevertheless, one must note that a longer repayment tenor leads to increased overall borrowing.
- Mortgage a high-value property
A borrower’s property to avail of a loan against property also determines the interest rates. This means the lending institution will check the mortgaged property’s condition, age, location and type to decide the interest rates. For example, suppose a borrower mortgages a high-value property located in a prime location and in top-notch condition. In that case, he/she will get lower interest rates than old, worn-out properties.
Besides knowing how to avail low-interest rates on a loan against property, borrowers should know how to calculate their EMIs. With the use of online loan against property EMI calculators, borrowers can compute their monthly obligations, thereby helping them choose the most suitable lending institution.
Loan applicants must always compare various financial institutions to get the best services. Here are the steps to use an online loan against property EMI calculator.
Steps to use an online loan against property EMI calculator
Borrowers need to follow the given steps to calculate the EMI of their loan against property.
Step 1: Borrowers first need to visit the website of their chosen lending institution/ institutions. On the website, they can find the loan EMI calculators.
Step 2: In the next step, borrowers must enter the desired loan amount they wish to borrow.
Step 3: Next, individuals have to enter the applicable interest rate.
Step 4: Borrowers will then need to enter the repayment tenor according to their convenience
Step 5: Now, individuals can view the results and decide accordingly
Furthermore, to draw more customers, several financial institutions provide pre-approved offers to their existing and new customers. These offers simplify and smoothen the lending process. Borrowers can check their pre-approved offers easily by entering their names and contact numbers on the lending institution’s websites.
In conclusion, borrowers should keep in mind the tips mentioned above to get the best loan against property interest rates in India. To get an idea of approximately how much loan borrowers can avail, they can use online loan against property eligibility calculators. These are easily available on the internet, and borrowers can compare different lending institutions’ terms before availing one.
