A loan against property is one of the easiest ways to acquire some higher amount of money from a lender. By keeping your property as the collateral, a lender offers you money. It may run into crores as per your financial profile and eligibility.
Quick Loan Against Property Insights
Anyone who is a property owner in a major metro city can apply for the loan against property (LAP) and can fund many needs such as:
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Funding for wedding expenses
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For establishing a business
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For business expansion
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For sending your children for higher education
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For urgent medical emergencies
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For all other personal needs
As per your loan against property eligibility, you may get up to Rs.1 crore and up to Rs.3.5 crore for salaried and self-employed individuals.
The biggest benefit of applying for the loan against property facility is that you can avail a lower rate of interest. The collateral here is your residential or commercial property. Hence, the offered loan against property interest rate is lower.
Compared to personal loans that you wish to avail to cover many needs, you can enjoy a lower loan against property interest rate. As a result, you can pay smaller EMIS and save more.
The loan against property facility also comes with a longer tenor of up to 18 years for self-employed and ranges between 2-20 years for salaried.
Anyone opting for a longer tenor can surely bring down the EMI amount to manageable levels. Hence, it may help him/her manage other expenses in life super easy.
However, while talking about the loan against property tenor, many applicants are a bit confused. They are confused about it affecting their CIBIL Score. If you are also confused if selecting a shorter or longer tenor can affect your Credit Score, read on!
What if you Select a Shorter Loan Against Property Tenor?
If you go ahead and select a shorter tenor for repaying the LAP account, you will need to pay up a large amount as the EMI. Hence, paying up a large amount may affect your monthly budget and other goals in life.
On the other hand, financial experts suggest not opting for too short of a tenor. You may not know about your life certainty, and a huge burden may affect your family. It is good to be sure of you and pay off the loan and save on the compounding interest. But, any mis balance in your financial profile may lead to defaults. In turn, it may affect your Credit Score severely.
What if you Go for a Longer LAP Tenor?
Want to boost you CIBIL Score? Opt for a longer tenor while borrowing a loan for repayment. It will ensure you to pay smaller EMIs. Therefore, you will be able to make payments on time. As a result, when you have a smaller amount as the EMI to manage, you won’t default on it. Therefore, it will lead to an improvement in the Credit Score.
Both the situations that may affect your CIBIL Score while opting for a shorter and longer LAP tenor are now discussed. You can go for one as per your needs, income, risks in life and repayment capacity.
Bajaj Finserv presents some magnificent pre-approved offers on loan against property, business loans, personal loans, home loans and others. If you opt for them, it will ensure a hassle-free and faster processing of your loan application.
You can check out customized pre-approved loan offers today by providing your basic personal details such as name and mobile number.
