With some reputed lending institutions operating and extending high-value credit options, finding a reliable is not a concern anymore. Moreover, if you possess a high-end asset, you can conveniently avail a substantial amount by mortgaging it. However, credit facilities like loans against property come with considerable financial responsibility.
In this regard, it becomes essential to select a loan amount that comes with an affordable interest rate for optimum utilisation. Therefore, to avail of the most competitive loan against property interest rates in India, you need to follow certain tips. Read on to know about them.
Tips to get the best loan against property interest rates in India
Acquiring a loan against property at the most affordable rate is quite possible if borrowers follow certain tips explained below:
Tip 1: Maintain a healthy credit score
A CIBIL score is one of the most crucial factors checked by the lender before approving a loan amount. This score indicates a borrower’s creditworthiness and repayment ability. Therefore, if the borrower possesses a score of 750+, he/she can negotiate with the lender for best interest rates and loan terms. However, if one finds that his/her credit score is going down, he/she can improve it by paying EMIs on time, limiting credit utilisation ratio, avoiding applying for multiple loan etc.
Tip 2: Avail a lower principal amount
Although borrowers may wish to acquire a bit higher amount than they require for their expenses, they mustn’t over-borrow. Borrowing an amount by exceeding the loan eligibility can attract higher interest rates as lenders consider such loan applications risky for defaulting. Therefore, it is wise to assess the actual requirement and apply accordingly.
Tip 3: Compare different lenders
Before availing a loan against property, comparing lenders and their lending rates in the market is better. One can explore multiple loan options and lending rates in the market. Once you explore certain offers, you can pick the best one from them.
Tip 4: Pledge the right property to mortgage
It is one of the important factors when choosing the best loan against property interest rates in India. If individuals pledge a property that is situated in a prime location will allow them to get the best interest rates and even a substantial loan amount. However, if the property is not well-maintained and the location is unpopular, the lender may not extend competitive rates and loan terms.
Tip 5: Check eligibility parameters beforehand
Knowing about lender-specific eligibility parameters for loan against property will not only allow borrowers to avoid rejection but also reduce the chance of dropping their credit score. After qualifying a property loan eligibility criteria and submitting necessary documents, individuals can avail of their preferred loan amount and negotiate with the lender for the best interest rate.
However, suppose individuals want to avail of a loan against property without any hassle. In that case, they can approach reputed financial institutions where they can avail of pre-approved offers on a range of financial products such as loans against property, home loans etc. Existing borrowers can avail these offers and bypass the hassle of an extensive documentation process. They can check their pre-approved offers by submitting their names and contact details.
Moreover, to ensure hassle-free repayment as well, one can use a loan against property EMI calculator beforehand to compute EMIs and interest components conveniently. Such online tools are offered by these reputed financial institutions for free and can be utilised multiple times.
Therefore, to sum it up, besides following these tips, borrowers can also choose a balance transfer facility to shift the outstanding principal loan amount to another financial institution to enjoy a lower loan against property interest rates in India. This will further allow them to pay reduced EMIs and total interest.