Three things to know before taking a loan against property

When you go for a property-based loan, it is important to know a few things before you apply. Check out here the most critical aspects to consider.

1. Property value: Even before you consider the loan against property interest rate, you must assess the value of your property that may change with its age. Property value may also depend on factors like the locality where it is based, property size or area, the reputation of its builder, and the facilities and amenities it offers. Ensure that your property is free from disputes and that you own its papers. With most things in favour, it becomes easier and quicker to avail a mortgage loan at low risk.
2. Loan eligibility: Check your eligibility by understanding all the criteria set by the bank from where you want to avail it. Staying aware will reduce your chances of loan rejection. If you are a country resident who is above the age of 25 years, carries a regular source of income and has strong repayment ability, then you should get the loan more smoothly.
3. Repayment ability: Look for your present and likely future expenses, as well as earnings. Consider also the dependents in your family. As per the loan against property interest rate, you should see how comfortable would it be to repay it through EMIs.

You may take a loan against property or a mortgage loan for varied purposes like supporting a child’s education, starting a business, personal needs or arranging a wedding.

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