What are the Factors to Consider Before Availing a Loan Against Property?

A loan on property is a secured credit variant that has gained popularity with a changing economy. This loan form offers substantial funds against collateral which can be either residential or commercial.

To secure a mortgage loan, borrowers have to submit minimal documentation and comply with simple eligibility requirements. 

Individuals planning to apply for this credit form must understand what a mortgage loan is first.

What is a mortgage loan?

A mortgage loan is a secured credit option that offers substantial funds against collateral. It is usually sanctioned against an immovable asset like a commercial or residential property. The lending institution retains ownership of the collateral until the borrowers repay the outstanding balance.

After understanding the definition of a loan against property, a potential borrower must check the factors linked to streamline the application.

Factors affecting LAP loan

• Mortgage loan interest rates

The interest levied on this credit form is compatible and easy in terms of repayment. However, the loan against property interest rates depends on a number of points like a borrower’s income, loan tenor, CIBIL score, etc. Hence, individuals must opt for a lending institution offering an affordable repayment structure.

• Tenor

The tenor offered against LAP is quite flexible. Usually, salaried individuals can repay the amount within two to twenty years. For self-employed individuals, the tenor can extend up to eighteen years. In this regard, one can utilise the loan against property calculator to facilitate an informed decision on borrowing.

• Loan amount

Individuals can avail high amounts against the LAP loan and utilise it to meet any number of financial requirements.

Following these points would aid a loan on property applicants to enjoy an expedient borrowing decision. 

Additional Read : Go and Check more about LAP Loan or Contact Bajaj Customer Care Number