The Top Factors You Need to Know Before Submitting The Loan Against Property Application
Loan against property is popular for various reasons, such as low interest rate, minimal documentation, easy eligibility, long tenor, convenient EMI payment options, and a no-frills application process.
However, countless borrowers make the mistake of applying for a loan against property solely by looking at the interest rate. They go for the lender offering the lowest rate while ignoring the fact that the displayed interest rate might differ from the effective one.
If you want to get the best loan against property interest rate, you need to know the factors that affect the rates. Knowing about these factors will also help you to expedite the loan application process.
Top Factors You Should Consider While Applying For a Loan Against Property
The Lender’s Reputation
The lender’s reputation plays a major role in determining the loan against property interest rate. New lenders often display ultra-low rates to lure borrowers. But they often levy higher processing fee, foreclosure charges, or other fees. In contrast, a reputed lender like PNB Housing has a legacy of over thirty years and do not charge exorbitant fees. Moreover, you may get facilities like doorstep service, discounted interest rates, loyalty benefits, etc., for free. Hence, if you want to increase the odds of loan approval and get a loan with the best terms, consider applying for a loan against property with a reputed lender.
Your age determines the loan against property eligibility and rates. Usually, most lenders do not accept loan applications from applicants aged 55 and above. Hence, the closer your age is to 55, the lesser will be the loan approval chances. In case a lender accepts the application, they might charge a higher interest rate. In contrast, if your age is closer to the entry age, that is 21, lenders might offer you the best loan against property interest rate.
Employment History and Income
Although lenders might advertise that they accept loan applications from anyone, that might not be real. They prefer borrowers with a robust job profile and a stable monthly income. For instance, government employees might receive more benefits than those in private jobs. Additionally, the income level also impacts the eligibility and rates. For example, someone earning a six-figure salary is perceived to have higher repayment capability than someone earning in thousands. Hence, before applying for a loan against property, try to enquire about the minimum income criteria and other parameters to choose the best lender.
Your credit score has a major impact on the loan against property eligibility and interest rate. A credit score above 750 increases the odds of getting the best loan against property interest rates. However, if you do not have such a high credit score, you can apply for a loan against property with PNB Housing Finance. For borrowers with a credit score below 750, PNB Housing loan against property interest rates starts at a low 9.80%. You can also enjoy the same benefits as those with a high credit score.
Besides the factors mentioned above, other factors that you may consider before applying for a loan against property are the loan term, interest type (fixed or floating), and your relationship with the lender. Ensure to check the latest terms and charges before applying for a loan against property.