Anyone who has a property and wishes to meet his/her high-end expenses can apply for the loan against property. Yes, if you have a residential or commercial property, then it a secure and quick solution to get access to a higher amount of money.
Do you need funds for some wedding expenses, business expenses, or purchasing a piece of land? Are you also planning to pay off urgent medical expenses, and planning a vacation or consolidating a loan? You can apply for the loan against property.
A loan against property (LAP) is a unique financial facility that lets you access a bigger amount of money at lower interest rates. If you have the required loan against property eligibility, you can borrow as high as up to Rs.1 crore and Rs.3.5 crore.
The repayment of the LAP is hassle-free as you get to enjoy a lower loan against a property interest rate. Hence, you get to pay off the loan in smaller EMIs and don’t need to bother about disturbing your monthly expenses.
Other than the loan EMIs and LAP interest rate, the loan tenure is also another factor. Yes, you need to take it into account while applying for the loan against property.
You should also know that multiple factors determine the tenure of your loan against property. Have a look:
Elements that can Determine the Loan Against Property Tenure
Your Desired Loan Amount
The desired loan amount impacts the tenure of your loan directly. The concept is simple to understand – the higher is your loan amount, the longer will be your tenor. The longer tenure eases off its payment and has no direct impact on your management of other financial goals in life. Also, opting for the longest tenure increases your loan against property eligibility. You can also use the online loan against property calculators to determine your loan eligibility and best tenors.
The Loan Against Property Interest Rates and EMIs
The loan against property interest rate and subsequent EMIs plays a crucial role in gauging the tenure of the loan. Anyone opting for the lower EMIs can enjoy a longer tenor. On the other hand, if you are comfortable with paying the higher EMIs, you can go for a shorter tenure and save on the compounding interest.
Your Age and Income
The age of the loan against property applicant and income are also major elements that may affect the overall duration of the loan. Anyone in his/her 30s/40s can opt for a longer tenor. But, if you are nearing your retirement, your lender will offer you a shorter tenure as your income may shrink or stop after you hang the boots. Loan applicants with fluctuating income, it’s always good to go for a long tenor. It will safeguard your CIBIL Score for future loan access at an affordable interest rate. There are many free online EMI calculators available. They can easily assess your income and let you opt for the best loan tenure for the desired loan amount.
The loan against property has emerged as an easy method to procure the huge amount of money at a lower rate. All that you need to do is pledge your property and meet the loan against property eligibility of the prospective lender. This way, you can easily apply for the LAP facility online and fund many financial needs in life.
You are now aware of some of the factors that can affect your LAP tenor. As a result, opting for the best tenure for your loan will now be a cakewalk. You can also compare all LAP deals online and choose the best that matches your needs and income.
Bajaj Finserv presents some pre-approved offers on loan against property, home loans, business loans, EMI finance, personal loans and a lot more. The objective of these offers is to make your entire loan processes easy, hassle-free and faster. You can easily check out your pre-approved loan deals right now by sharing your basic personal details such as the mobile number and your name.