PUNE: Taking a secured loan like a loan against property may seem like a better alternative to an unsecured loan. However, an asset is not enough to get you a hefty sanction on cost-effective terms. Your credit history and behaviour, income, and other factors also contribute to how affordable a loan against property will be for you. To have a smooth journey right from application to disbursal, follow these top 4 tips.
Tip 1: Select a lender only after a thorough comparison
Every lender has guidelines based on which they sanction a property loan. In order to qualify for the loan, you need to fulfil these eligibility terms. Additionally, for a cost-effective sanction, you should compare various lender offerings. You can do this online at aggregator websites or by using an EMI calculator, without harming your credit score. When comparing, check hidden terms and conditions and read first-hand reviews. This will help you select a lender that offers a substantial loan on affordable terms.
It is a good idea to choose a lender like Bajaj Finserv, as it offers a loan against the property of up to Rs 5 crore on competitive interest rates, along with disbursal in 72 hours and repayment over a maximum of 20 years.
Tip 2: Check your CIBIL score before applying
Your CIBIL score reflects your creditworthiness, repayment history, and your current debts. This is why any lender will look at the score and your credit history closely before approving a sanction. Thus, it's important that you prove your financial worth by showing a good income and apply for a loan only when you have a credit score of 750 and more. Facing rejection on your loan application due to low credit score will bring down your score even further.
Tip 3: Learn about the interest rate and hidden charges before applying
The interest rate at which you service your mortgage loan will determine its affordability. Thus, to keep your EMIs pocket-friendly, opt for a nominal interest loan with no hidden charges. Also, understand that lenders offer you a sanction basis the asset you pledge as security. This means that not only can you get a hefty sanction of up to 6080 per cent of your collateral's value when you pledge a high-value property by a reputed builder, but you can also get financing on lower interest rates.
Tip 4: Weigh your needs and plan repayment before applying
Allow your financial requirements to be the guiding force when deciding how much to borrow. Also, assess your present income alongside existing EMIs and regular expenditure to decide whether you can afford a property loan or not. Apply for a loan only when you feel it is an economically viable solution, once you have identified how you will repay the loan, either through investment returns or your salary alone.
Keeping these tips in mind, proceed to check your pre-approved offer for a property loan from Bajaj Finserv. By entering a few basic details, you can view deals that are customised for you and enjoy instant, hassle-free approval.