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What You Need To Know About Repaying Loan Against Property?
Total Articles: 33
There are few facts you need to know about loan against property in India before you consider a lender. Your in-depth research and your understanding of current financial situation should provide you information about three factors of LAP. If they are skewed in your favour, you can continue with your research and find the suitable lender for loan against property in India.
Right reasons to avail loan against property:
You can avail the loan against property in India for any reason. In most cases, you don’t even need to disclose it. However, whether it is an investment property or a self-occupied property, you take a sizable risk with this loan. Therefore, you must ensure that you choose it for right reasons and you have the repayment ability to pay its EMI comfortably. The most common reasons for taking loan against property are:
• Funding business expansions
• Supporting foreign education for children
• Funding wedding ceremonies of children
• Paying for medical expenses
Several borrowers consider this loan to fund an international vacation too. However, you must ensure your financial well being before consenting to a loan against property for leisure activities .
Right time to avail loan against property:
If your reason for taking this loan justified, you should consider approaching a lender except for the following circumstances.
• You do not have the repayment ability to repay debt through some form of regular income. Lenders will not entertain your application in such cases.
• You still have to repay major chunk of home loan on the same property. You may get the loan. However, you will get much lesser amount and will take much higher risk as you will need to ray two different EMIs every month. The cost of failing to repay EMI can be extremely high.
Profitable way to avail loan against property:
You need to avail this loan in right way to make it most beneficial choice for you and your family. The only way to ensure it to select a lender and a loan package that offers you following advantages:
• Affordable interest rates
• Optimal evaluation for your property
• Preferable loan to value ratio
• Flexible loan packaging terms
If you understand your finances to know right reason and right time, then you can consult a third party personal finance expert, or a friend from banking industry to understand these loans better. Then, select the lender that will serve your interest well and avail this loan.
Author Bio :
Aishwarya Mahurkar is an experienced writer concerning the finance industry. Her articles help in informing her readers of the different types of home loan products such as Housing loan, Home improvement / renovation loan, loan against property for leisure activities, land / plot loan & processes that cover loan against property in India & obtaining finance from loan provider.
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