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How To Avail The Best Loan Against Property In India
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A loan against property is money borrowed against a property you own, at a comparatively low interest rate. The purpose for the loan must be reasonable, as the risk involved is high. One must decide on the type of loan very carefully so as to avail a loan in keeping with one’s requirements and financial planning.
Here are some ways you can ensure that you avail the best loan against property in India:
Maintain the property:
The property is the most important factor in availing the loan against property and one should ensure the property is in good condition. The lender offers one a loan amount which is based on the current market value of the property. Thus maintaining one’s property shall make one eligible for a bigger loan amount.
Validate the property title:
The property title should be free of encumbrances. In case of more than one owner, one must get a joint letter signed by all the owners and do the needful before approaching the lender. The property must have valid documents in order for you to avail the best loan against property in India.
Get your income source in order:
The loan amount is decided upon by the lender taking into consideration your income source. Employed individuals need to showcase their salary statements where as self-employed individuals need to produce their last two years’ financial statements. If the income source is secure, the individual is likely to get the loan approved.
Negotiate the loan against property interest rate:
Loan against property interest rates are low in India. Personal loans and other unsecured loans offer loans at high interest rates making loan against property an attractive option. One must negotiate with the lender and avail the best interest rate for the same.
Maintain good credit history:
Your credit score, validated by the Credit Information Bureau India Ltd (CIBIL), is of great importance. One must make sure they keep their credit history flawless in order to be able to negotiate the loan against property interest rate further.
Maximise the loan amount:
The loan amount depends on the type of security you provide. In case of gold as the collateral, lenders offers to furnish you with a higher loan amount as compared to that offered for a plot or property as security. However, when gold is given as a security, the loan against property interest rate charged is also comparatively higher.
Since the property you offer as security needs to be validated both legally and technically by the bank or finance company, the approval procedure takes a little longer. Still, the best loans against property in India are always offered to individuals who maintain both a high credit score and their property well.
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 loan against property interest rate, Home improvement / renovation loan, loan against property in India.
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