rules to follow while applying for lap

9 Vital Factors To Consider While Applying For A Loan Against Property

April 22, 2024 • 845 views

Applying for a Loan Against Property is an important financial decision that has several long-term implications. While applying for a Loan Against Property, you must consider all the factors such as loan amount, property value, interest rates, eligibility criteria, documentation, etc. Keeping all these factors in mind helps you get a Loan Against Property in favourable terms. Read on to learn more about these factors while applying for a Loan Against Property.

9 Factors To Consider While Applying For A Loan Against Property

1. Loan Amount and Property Value

There are various lenders in the market that offer different loan amount. Your loan amount depends on various factors, such as the value of the property and your credit score. Also, the loan amount is highly influenced by the market value of the property, which may vary depending on the size, location and amenities.

2. Compare Eligibility Criteria & Documentation

Compare eligibility criteria and documentation requirements for various lenders that you have shortlisted. Eligibility criteria include age, income, citizenship and minimum credit score. Once you meet the eligibility criteria, you have a good chance of getting a Loan Against Property in  favourable terms. For the documentation process, you must provide identity proof, income proof, address proof and other important documents.

3. Processing Fees

While processing your loan application, lenders have to bear various administrative costs that can vary from lender to lender. Processing fees may range between 0.5% to 1% plus applicable taxes. Comparison of processing fees will help you save on additional costs.

4. Repayment Process

Your repayment amount includes the principal amount and interest payable within the pre-decided tenure. While applying for a Loan Against Property, you must check if there are any preclosure charges applicable. For Loan Against Property, the repayment tenure ranges from 10-15 years.

5. Preclosure Process and Fees

Foreclosure or preclosure fees may range between 2% and 4% of the outstanding loan amount. Before applying for a Loan Against Property, you must also check the foreclosure charges. Foreclosure or pre-closure charges are levied by the lender if you choose to pay the entire outstanding loan amount before the loan tenure ends.

6. Interest Rates

The rate of interest depends on factors such as loan amount, tenure, credit score, the value of the property, etc. It is important to compare the rate of interest of various lenders and choose the lowest. This will help you reduce the interest payable amount for the Loan Against Property.  

7. Compare Various Lenders' Terms And Conditions

For a Loan Against Property, it is important to read all the terms and conditions applicable. This will save you from any sudden expenses or costs that are levied with the loan amount.

8. Disbursal Time

Disbursal time plays a crucial role while you are applying for any loan. The less disbursal time there is, the faster the loan amount will be transferred to your bank account. This is helpful when you need funds urgently or during an emergency.

9. Previous Loan Applications

If you have multiple loan applications with rejections, there is a high chance of your current loan application getting rejected. If you are applying for loan frequently, it shows you are credit-hungry and are not able to manage your debt. As a borrower, you must avoid applying for multiple loan applications at a time.

Want to avail a Loan Against Property from a lender that ensures seamless loan application and disbursal? With Poonawalla Fincorp, you can maximise the benefits of a Loan Against Property.

Also Read - Decoding the concept of Loan Against Property (LAP)

How to Apply for a Loan Against Property with Poonawalla Fincorp?

To apply for a Loan Against Property with Poonawalla Fincorp, follow these three simple steps:

  • Step 1: Click on the "Apply Now" button.
  • Step 2: Enter your DOB, PAN number, property ownership details, loan amount, employment details, etc.
  • Step 3: Attach the necessary documents.

Upon successful verification, the loan amount will be instantly credited to your bank account. 

Also Read - Major factors to consider while applying for Loan Against Property

To Conclude

Securing a Loan Against Property requires adherence to essential rules and careful consideration of financial implications. By electing the right lender and understanding loan terms, you can mitigate repayment risks and maximise the loan benefits. With Poonawalla Fincorp's seamless application process and instant loan disbursal, accessing the advantages of a Loan Against Property becomes convenient, thereby empowering you to fulfil the financial needs efficiently. 

Disclaimer

We take utmost care to provide information based on internal data and reliable sources. However, this article and associated web pages provide generic information for reference purposes only. Readers must make an informed decision by reviewing the products offered and the terms and conditions. Loan Against Property disbursal is at the sole discretion of Poonawalla Fincorp.
*Terms and Conditions apply

poonawalla fincorp team

Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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