Availing a Loan Against Property has become easy these days. There are a number of loan aggregating companies such as MakeMyMoney, which makes it easier to get the loan. However, what you need to remember is that as each and every lender might have different criteria for sanctioning the loan.
Here we are going to tell you a few essentials of LAP which you might want to tick off your list before you apply for a loan.
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Property Value: The first thing which you need to keep in mind is the value of the property (be it residential or commercial). You should know the monetary worth of it. You also need to remember that the loan amount which you will get, won’t be the full value of the property. In a best case scenario, it can be 80% -90% but never the full value. So keep this in mind before you go in for LAP.
Income and repayment ability: People take Loan Against Property usually when they need a huge loan amount. Before the lender approves the loan, he or she will look into your monetary strength and repayment ability. Depending on these factors your EMI scheme and the loan tenure will be decided. So remember you need to be in a good financial position before applying for a Loan Against Property.
Co-applicant: If availing a loan is difficult as an individual then you always have the option of getting a co-applicant on board. In this case, the bank will also look into the credentials of the co-applicant and do a background check and determine whether both of you together are eligible to repay the loan or not.
Ownership of the property: If you are the only owner of the property then you won’t have difficulty while availing the loan. However, if you have a co-owner of the property who is not willing to agree with your decision of going for a loan against property, then there might be a problem and you might not get a loan.
Be aware of the fee: When it comes to the fee being involved, it is just not the interest rates, there are other charges as well such as processing fee, pre-closure charges, agent cost and a few others. You should be aware of all such charges which need to be paid before you apply for the loan.
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