Check Out the Pros & Cons of Loan Against Property Balance Transfer

A loan against property is a secured loan. Borrowers availing a loan against property balance transfer need to keep certain pointers in mind before going forward with it.

# Advantages of Balance Transfer

• Lower Rate of Interest

Among the advantages, the first one a borrower can avail is to a lower rate of interest with the new lender. This is also among the most common benefits which borrowers avail from a loan against property balance transfer.

• Flexible Loan Tenor

With a loan against property balance transfer, the borrower can opt for to increase the tenor to repay the loan remainder.  Although doing so can increase the total cost of loan, it helps them lower the applicable EMIs and guarantee repayment.

# Disadvantages of Balance Transfer

• Repayment Tenor Might Increase

In a fluctuating economy, benchmark or reference rates vary. Borrowers who have availed the loan at floating rates may find themselves in a difficult financial scenario if the rates increase, which often compel lenders to increase the loan tenor.

• Loan Appraisal Process

Though a loan against property balance transfer can be a lucrative opportunity, in some cases, the process can become tricky.

Determine the ideal tenor for your loan against property to best benefit from a balance transfer. Refer to leading lenders who offer the most beneficial balance transfer terms.