With high financing value and long tenures for repayment, loans against property have become one of the preferable funding options for many. The past year saw subsequent repo rate cuts, and also brought down the interest rates levied by various loan against property finance companies.
Thus, while loan against property is set to get cheaper, you can conveniently finance your big-ticket expenses with the advance if you fulfil the eligibility requirements. Nevertheless, to get the best of affordability and features, you must look out for the best financial institution providing the loan. With multiple lenders available in the market, competition is quite intense. Hence, you might need to take care of a few crucial aspects. Below given are some of the ways that can help you find the best lender for your loan against property.
Tips to Help You Find the Best Finance Company for Loan Against Property
- Check loan processing time
The financing efficiency of a lending institution starts with its ability to provide funding in the least possible time. You must thus look out for a lender who ensures quick approval of the loan against property with minimum time taken for verification and property authentication.
With some of the best loan against property finance companies, the loan processing and approval time can be reduced to as little as a few minutes of application. It is also good to go for lenders who enable online loan application as it significantly eases loan availability through reduced hassles.
- Compare interest rates and other charges
Your choice of lender must also be based on the interest rate levy along with related charges applicable to a loan against property. Lenders offering the most competitive interest rates in the market are the ones preferred by a majority of borrowers. Not to mention, other charges must also be levied at nominal rates to ensure affordable financing for you.
- Choose lender based on maximum loan quantum available
As a loan against property is often sought to fulfil big-ticket financing needs, it is ideal that your selected loan option offers a high maximum loan quantum. Some of the top uses of these loans include education, overseas travel, home renovation, medical emergencies, marriages, etc.
As a loan against property does not come with any end-use restriction, it can be used to address any of your financing needs, including professional funding requirement.
- Find out details about prepayment facility
Some of the best loan against property finance companies also provide easy prepayment facility. As the loan establishes a long-term financial commitment, one needs to plan repayment, with options to reduce loan liability or close the loan account altogether at any time before the tenure ends.
Simple prepayment facilities like part-prepayment and foreclosure enable you to reduce your loan tenure and save on interest liability significantly. Nevertheless, the prepayment facility must be available without much hassle and attract low to no charges.
- Check norms related to balance transfer
In case the loan against property interest rates witness a reducing market trend in the near future, you can transfer your outstanding loan amount to a new lender for repayment at reduced rates. It is thus essential that you check facility related to balance transfer along with charges levy for a suitable borrowing decision.
- Confirm about repayment tenure flexibility
You must also check if the repayment tenure is flexible enough to enable loan repayment in affordable EMIs. Usually, a loan tenure extending up to 20 years provides you sufficient scope to choose your suitable repayment period for EMI affordability.
Also, check if the eligibility and document requirements are simple or not for easy accessibility of the advance. Visit the Website to know more about Loan Against Property Finance Companies.