Online Convenience: Applying for a Loan Against Property

Loans against property, also known as property loans or mortgage loans, are loans availed of against a residential or commercial property. Low-interest rates, long repayment tenor, hefty loan amounts and loan against property tax benefits make these loans a popular choice among borrowers. Whether you need money to consolidate debt or buy another property, a loan against property could be the solution to your problems. 

Applying for a loan against property is fairly easy in India. These days, most lenders allow loan borrowers to apply for property loan while sitting within the comforts of their homes; most lenders allow loan applicants to apply for a loan online. Lenders host a loan application form on their websites which the loan applicant can fill out to establish their eligibility for the loan. These online loans against property application forms require borrowers to enter details, such as their name, address, age, income, other existing loans, etc. Based on the information provided, lenders decide the terms and conditions of the loan to be extended to the borrower. 

If the borrower agrees with the loan terms and conditions extended to them the first time, they send a signed copy of the loan sanction letter. The lender then starts with the verification of the documents provided, including all property documents as well as carries out the physical verification of the property to be pledged as collateral. If the property meets all the requirements and you pass all the verification checks, your lender will start working on the final loan agreement. You will have to visit your lender's office to sign this document and once this is done, your lender will release the loan money into your loan account. It is now that your EMI obligation to your lender will also start.

If you are planning to apply for a property loan, here are a few things you must keep in mind. 

1. Loans against property involve collateral and failing to pay one's loan EMIs can cause one to lose ownership of one's property. Therefore, individuals must avail of loans against the property after deliberate planning. A loan against property EMI calculator can help with repayment planning as well as strategizing prepayments and foreclosure. A loan against property EMI calculator can also help you figure out the right combination of loan value and loan tenor for you as well as choose the best loan offer. Thus, all loan applicants must make this calculator a part of loan planning. 

2. Loans against property are long-term loans and thus, one must try and avail themselves of the lowest interest rate possible for even a small reduction in the interest rate offered can help one save considerably in the long run. Maintaining a high CIBIL score, pledging high-quality collateral and maintaining job and income stability will help in this regard.

3. Make it a point to calculate your loan against property eligibility in advance and apply for a loan amount you are eligible for. This will enhance your chances of loan approval and availing of the loan on the most beneficial loan terms and conditions. 

4. Lastly, if you plan to foreclose your loan, opt for prepayments or foreclosure during the early years of your loan tenor. This will help you save the maximum interest possible.

5. Lastly, these days, all lenders offer a home loan balance transfer facility. So, if you are not happy with your current lender's service or the terms and conditions they are offering you on your property loan, you can transfer your property loan to another lender at any point in your home loan journey.