6 things to look out before taking loan against property - ruloans
TRANSCRIPT
6Things To Look Out Before
Taking Loan Against Property
Rate of InterestCheck out the rate of interest of your desired loan deal.
Make sure to do some background market research regarding various LAP (Loan Against Property) deals. It
is always advisable to choose the lowest interest rate on mortgage loan as you can save big chunk of money.
All Purpose LoanAn advantage of Loan Against Property is you can ask loan
for any purpose/need. A loan against your property can be taken against a commercial or a residential property.
You can also apply for this loan if you need funds to acquire new property. A take-over of your existing loan
with refinancing is also possible with LAP.
TenureLonger tenure = more interest outflow
While this means borrowers can enjoy a comfortable longer tenure of repayment with lesser EMI burden, it
also means that you pay more interest
Property in bank custodyLAP will mean that the property will be locked up with the
bank from the day you have taken the loan and till such time you have repaid it in full. This is why experts
advise against taking LAP for long tenures. Also once you take LAP for a property, the same cannot be used to
take another loan.
No Tax Benefit
Unlike a normal home or education loan, there is no tax benefit if you opt for a loan against property. If you
expect tax benefits against your loan repayments, you might want to consider other forms of loans.
Longer Processing TimeJust like a home loan, the credit approval of LAP is a long
process wherein the bank goes through your income documents as well as all the property-related
documents
Thank You!For more loan details contact us
Contact details : Toll free no. : 1800 266 7576Mail Id : [email protected] : https://www.ruloans.com