The loan against property (LAP) can help you cover all bigger expenses right from financing your children’s overseas education or wedding expenses, it can include all. However, you have to obtain it first. That said, like every other borrower, you must be expecting the same at low mortgage interest rates. Though it’s not that easy, following the below-shared tips can help you do that.
Your CIBIL Score: Even though CIBIL score has a very negligible role to play in case of a secured loan, it helps the lender determine the financial status of the applicant. Accordingly, a good credit score would mean the person has good control over his finances and vice versa.
A Good Repayment History: A good repayment history without any EMI defaults can also help you get a good interest rate deals on loan against property. Thus, if your CIBIL report has anything which can bring down your eligibility, do a settlement with the bank or NBFC associated with it and get it removed.
Mortgage a Property of Higher Value and Ask for Less: Even though loan against property is highly secured in nature owing to the availability of mortgage, pledging collateral worth higher and asking less as a loan against it might get you good deals. In short, keeping your loan to value ratio lower can get you better interest offers.
Additional Read: 4 ways to get a Lower Loan Against Property Interest Rates
Legal Aspect related to your Property: Last but not least, your property (the one you’re mortgaging) should be legally sound i.e. should be legally yours and you should have complete authority to mortgage it. Also, it should either be a registered flat, residential land or a commercial property.
Alisha Antil is your best financial helper for insurance. She has a vast experience in finance and insurance and provide to you the expert advise in insuring your property and health.
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