Availing for a loan against property is the best option if you are in search of funds with a low rate of interest. As property loan keeps your property as security, you can even get a large amount of up to Rs.1 crore (Rs.3.5 crores for self-employed) with a longer repayment tenure. But the interest rate is not merely dependent on the collateral alone. Here are other factors that decide the interest rate offered to you.

> Good CIBIL Score

A credit score of less than 750 might increase the loan against property interest rates offered to you. Improve your credit score to prove your creditworthiness to the lender.

> Clean repayment history 

You get a lower interest rate if you have managed to pay off your credit card outstanding or current loan EMIs on time. Therefore, never default or delay debt payments.

> Consistent Income and Employment history 

Your income, employer, and job stability help in fetching a lower property loan interest rate. Make sure you don’t switch your job often.

Choose a lender which provides several offers along with quick processing and disbursing. NBFCs like Bajaj Finserv provides pre-approved offers and a hassle-free application where your loan amount can get disbursed even in 3 days.

Additional Reads:

Right Guide to the Loan Against Property Interest Rate

Best Ways to Pay Back your Debt in No Time

If you are looking for an easy funding option to fund your multipurpose needs, loan against property is a good option. There are many lenders in India offering this easy facility to avail a loan against your property.

This loan option enables you to get high loan value at a very affordable interest rate, as well as flexible loan tenor. Let’s have a closer look at why the mortgage loan is perfect for your different financial requirements.

You get Ample Loan Amount to need your different Financial Needs

Whether you want to finance your child’s education, invest in your children’s marriage or you have any other financial emergency, you can opt for a loan against the property to get a large amount to meet your expenses.

Affordable EMIs with Long Tenure and Lower Interest Rates

On loan against property, you get easy repayment option on a long tenor. You can repay the loan amount in affordable EMIs for up to 20 years, which is a very long time to clear your debt. You can even prepay the amount as foreclosure at once to get debt-free as soon as possible.

Flexi Loan Facility

Flexi Loan facility offered by certain NBFCs allows you to withdraw your saved investment from your main sanction whenever you need it – whether for medical or travel expenditure. The benefit of this facility is that you get to pay only the interest amount that you have utilised from the total sanction. Moreover, you even repay what you’ve borrowed as interest-only EMIs and repay the principal amount at the end of the tenor. This will help you in properly managing your cash flow.

Additional Read: Fund your Multipurpose Needs through Loan Against Property

How would you feel if you apply for a loan and get approved instantly? Delighted. Right? Certainly. Well, you must know getting approved for a loan, especially in case of loan against property, isn’t very difficult. Thus, the minimum CIBIL score required for any loan, You can simply follow the below mentioned prerequisites and submit your application once you’ve perfected it.

> Lower down your present obligations: The first requisite is to increase your repayment capacity. This is only possible if you’re saving a hefty amount from your monthly income after managing your monthly needs. For a gist, if you can save 40 to 43 percent of your monthly income every month, you’re very likely to have a high credit eligibility. Accordingly, if you already have multiple loans on your name, you can pay them off first and then request a fresh loan.

> Continue paying your EMIs and credit card dues on time: CIBIL takes at least 5-6 months to update their records based on the data shared by banks and NBFCs. Thus, keep on paying your EMIs and credit card dues on time. Patience will help you achieve your goals of ensuring a high CIBIL score to get quickly approved for a mortgage loan.

How to get approved for a loan against property? 

The same would be possible once you're done with application. So, find out good mortgage loan schemes, compare them based on their suitability  and apply. The loan against property application process is very simple. You can apply online or visit the nearest branch of your lender to apply.